Grand Rapids Charter Township Kent County Michigan FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS REPORT Year ended December 312008

CONTENTS

Page

MANAGEMENTS DISCUSSION AND ANALYSIS i-vi

INDEPENDENT AUDITORS REPORT 3-4

BASIC FINANCIAL STATEMENTS Government-wide financial statements

Statement of net assets 5 Statement of activities 6

Fund financial statements Balance sheet - governmental funds 7 Statement of revenues expenditures and changes in fund balances shy

governmental funds 8-9 Statement of net assets - proprietary fund 10 Statement of revenues expenses and changes in fund net assets - proprietary fund 11 Statement of cash flows - proprietary fund 12 Statement of fiduciary net assets - Agency Funds 13

Notes to financial statements 14 - 22

REQUIRED SUPPLEMENTARY INFORMATION Budgetary comparison schedules

General Fund 23 - 24 Improvement Revolving Fund 25 Public Safety Fund 26 LeonardCrahenForesthili Pathways Fund 27

SUPPLEMENTARY INFORMATION Combining balance sheet - non major governmental funds 28 Combining statement of revenues expenditures and changes in find balances shy

nonmajor governmental funds 29

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS

The following discussion and analysis is intended as a narrative overview of the Grand Rapids Charter Township Michigans operations over the fiscal year and its financial condition on December 312008

FINANCIAL HIGHLIGHTS

bull The Townships total net assets increased $674070 (6 percent) as a result of this years operations

bull Of the $11662686 total net assets reported $3920475 is unrestricted or available to be used to meet future operating and capital improvement needs

bull The General Funds unreserved undesignated fund balance at the end of the fiscal year was $869541 which represents 33 percent of the actual total General Fund expenditures for the fiscal year

Overview of the financial statements

This discussion and analysis introduces the Townships basic financial statements that follow this section These financial statements are presented to comply with Governmental Accounting Standards Board Statement No 34 The Townships annual financial report is comprised of four parts managements discussion and analysis the basic financial statements required supplementary information and an optional section that presents combining statements for nonmajor governmental funds The basic financial statements include two kinds of statements that present different views of the Township

bull The first two statements are government-wide financial statements that provide both long-term and short-term information about the Townships overall financial status

bull The remaining statements are fund financial statements that focus on individual parts of the Township government reporting the Townships operations in more detail than the governmentshywide financial statements o The governmental funds statements tell how general government services like public works

and public safety were financed in the short term as well as what remains for future spending

o Proprietary fund statements offer short- and long-term financial information about the activities the government operates like a business The Townships lone proprietary fund accounts for its building inspections department

The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data The financial statements are followed by a section of required supplementary information that further explains and supports the information in the financial statements

A comparative analysis of the basic financial statements for 2008 and 2007 is also presented

-ishy

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

Government-wide statements

The government-wide financial statements report information about the Township as a whole using accounting methods similar to those used by private-sector companies The statement of net assets includes all of the Townships assets and liabilities All of the current years revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid

The two government-wide statements report the Townships net assets and how they have changed Net assets - the difference between the Townships assets and liabilities - is one way to measure the Townships financial health or position

bull Over time increases or decreases in the Townships net assets are an indicator of whether its financial health is improving or deteriorating respectively

bull To assess the overall health of the Township you need to consider additional nonfinancial factors such as changes in the Townships property tax base and the condition of the Townships roads

The governmen~-wide financial statements of the Township are divided into two categories

bull Governmentalmiddot activities - These activities include functions most commonly associated with government (eg general government public safety public works etc) Property taxes and intergovernmental revenuesmiddot generally fund these services

bull Business-type activities - Tbe Township charges fees to customers to help it cover the costs of operating the building inspections department r

Fund financial statemehts

The fund financial statements provide more detailed information about the Townships most Significant funds - not the Township as a whole Funds are accounting devices that the Township uses to keep track of sp~cifi~ sources cgtf funding and spending for particular purposes

bull Some funds are required by state law and by grant agreements bull The Township Board establishes other funds to control and manage money for particular purposes

(like sewer and water improvements lor to show that it is properly using certain taxes and other revenues (like the street lighting and lakes management special assessments)

The Township has three kinds of funds

bull Governmental funds Most of the Townships basic services are included in governmental funds which focus on (1) how cash and other financial assets that can be readily converted to cash flows in and out and (2) the balances left at year end that are available for spending Consequently the governmental funds statements provide a detailed short-term view that helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the Townships programs Because this information does not encompass the additional long-term focus of the government-wide statements we provide additional information at the bottom of the governmental funds statement that explains the relationship between them

-iishy

I

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

bull Proprietary funds Services for which the Township charges customers a fee are generally reported in proprietary funds Proprietary funds like the government-wide statements provide both long- and short-term financial information

bull Fiduciary funds These funds are used to account for the collection and disbursement of resources primarily taxes for the benefit of parties outside the government The Township is responsible for ensuring that the assets reported in these funds are used for their intended purpose The Townships fiduciary balances are reported in a separate Statement of Fiduciary Net Assets shyFiduciary Funds We exclude these activities from the Townships government-wide financial statements because the Township cannot use these assets to finance its operations

FINANCIAL ANALYSIS OF THE TOWNSHIP AS A WHOLE

Net assets Total net assets at the end of the fiscal year were $11662686 an increase of 6 compared to the prior year However $7483378 of this total is invested in capital assets and $258833 is restricted for various purposes Consequently unrestricted net assets were $392047534 of the total

Condensed financial information Net assets

Governmental activities

2008 2007

Current and other assets $ 5827007 $ 4967381 Capital assets 7483378 7601546

Total assets 13310385 12568927

Liabilities other than long-term debt 1647699 1580311

Net assets Invested in capital assets 7483378 7601546 Restricted 258833 106474 Unrestricted 3920475 3280596

Total net assets $ 11 1662686 $ 10988616

-iijshy

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

Changes in net assets The Townships total revenues are $3587790 Approximately 39 of the Townships revenues come from property taxes while state revenue sharing represents 28 About 17 of total revenues come from charges for services

Condensed financial information Changes in net assets

Governmental activities

Program revenues Charges for services Operating grants and contributions Capital grants

General revenues Property taxes State shared revenue Cable franchise fees Interest income Other

-Special item

Gain on sale of land

Total reventles

Expenses Legislative General government Public safety Public wprks Health anti welfare Community and economic development Recreation and culture

Total expenses

Increase in net assets

2008

$ 454055 115970

79916

1386749 1000880

168242 150033

15857

216088

3587790

20632 944981

1454713 223195

9769 97627 74893

2913720

$ 6741deg70

2007

$ 410129 59303 74436

1297755 I940957 182066 208816

10986

r 3184448

19764 774131

1462900 389732 93883

112325 I 66805

2919540 I $ 264908

-ivshy

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

Governmental activities Governmental activities increased the Townships net assets by $674070 in the current year compared to a $264908 increase in the prior year The Township experienced a significant gain on the sale of land in the amount of $216088 in the current year which augmented the increase in net assets Program and general revenues also increased by $187254 while expenses decreased by $5820 to further enhance the increase in net assets compared to the prior year The increase in revenue in the current year can be attributed primarily to the following significant items

bull The receipt of $100000 from Kent County that is restricted for maintenance of the courthouse property

bull A 3 increase in taxable value generated nearly $89000 in additional tax revenues bull An increase in state shared revenue of nearly $60000

The cost of all governmental activities this year was $2913720 compared to $2919540 in 2007 After subtracting the direct charges to those who directly benefited from the programs ($454055) and operating and capital grants ($195886) the public benefit portion covered by property taxes state shared revenue and other general revenues was $2263779 in 2008 compared to $2375672 in 2007

FINANCIAL ANALYSIS OF THE TOWNSHIPS FUNDS

At December 312008 the Townships governmental funds reported total fund balances of $3942976 an increase of $803866 over last year

The fund balance of the General Fund at year end was $869541 which represents a decrease of $325802 in 2008 The fund balance decreased due to increases in general government expenditures ($185000) and public works ($153000) expenditures General government expenditures increased due to an increase in legal fees ($75000) and computer support fees ($29000) and public works expenditures increased due to an increase in road improvement costs

The fund balance of the Improvement Revolving Fund at year end was $2880875 The funds equity increased by $980633 in 2008 primarily due to a sale of land that generated revenue of $891 088

General Fund budgetary highlights

Revenues were $180051 higher than budgeted as several revenue sources exceeded expectations Property tax revenues ($30159) state grants ($89283) charges for services ($52477) and interest income ($30547) were all more than expected

General Fund expenditures were $157570 less than the amounts appropriated because of the Townships continued ability to control operating costs Fire Department costs were the most notable variance in that actual costs were $78347 less than appropriated

These variances resulted in a $336980 positive budget variance and a $325802 decrease in fund balance compared to a budgeted decrease of $662692

-vshy

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

Capital assets

At December 31 2008 the Township had invested $7483378 in various capital assets including its land buildings equipment and vehicles This amount represents a net decrease of $118168 in 2008

This years major capital asset additions included

bull Costs incurred to develop a bike trail in the amount of $507549 bull Costs associated with shared road costs in the amount of $263373

Economic condition and outlook

The current economic condition has dramatically deteriorated during the last year on both the national and state level There are very few indications of an economic turnaround nationally and most experts expect Michigan to lag behind any national recovery The negative affect of the continuing recession on Grand Rapids Charter Township relates to our revenue sources for 2010 and 2011 and are as follows

a) The probable deflation of real property values in 2009 with lower property tax collection for 2010 and 2011 will be most likely be in the 1 to 2 range annually

-traquo High unemployment will likely result in less consumer spending and decrease state tax receipts that will impact the revenue we r~ceive from State Constitutional Revenue Sharing by as much as 10

c) The further slowdown in construction will likely result in less inspection fee revenue of approximately 25 this year and remain flat for 2010 with slow growth returning in 2011

d) The interest we earn on our investments wilr likely average in the 25 annual range which is oneshythird less than 2008 with no anticipated rebound in interest rates until late 2010

The impact for the 2009 Grand Rapids Charter Township budget is an expected revenue drop of 38 from the 2008 level The Township will likely see an additional decline of 6 in 2010 before stabilizing for the 2011 budget year Grand Rapids Charter Township expects to weather the economic storm without increasing the burden on our residents of additional taxes or fees We will take the necessary steps to ~ontrol costs and provide essential services to live with the revenue projections

Contacting the Townships financial management

This financial report is designed to provide a general overview of the Townships finances to its citizens customers investors and creditors and to demonstrate the Townships accountability for the money it receives Questions regarding any information provided in this report or request for additional financial information should be addressed to bull -~

Grand Rapids Charter Township Phone (616) 361-7391 Michael DeVries Supervisor 1836 East 8eltline NE Grand Rapids MI 49525-4594

I

I

I r

I I l

-vishy

246 E Kilgore Road Siegfried Crandall PC Kalamazoo MI 49002-5599 wwwsiegfriedcrandallcom

Certified Public Accountants amp Advisors Telephone 269-381-4970

800-876-0979 Fax 269-349-1344

INDEPENDENT AUDITORS REPORT

Board of Trustees Grand Rapids Charter Township Michigan

We have audited the accompanying financial statements of the governmental activities each major fund and the aggregate remaining fund information of Grand Rapids Charter Township Michigan as of December 31 2008 and for the year then ended which collectively comprise the Townships basic financial statements as listed in the contents These financial statements are the responsibility of the Grand Rapids Charter Township Michigans management Our responsibility is to express opinions on these financial statements based on our audit

We conducted our audit in accordance with US generally accepted auditing standards Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement An audit includes examining on a test basis evidence supporting the amounts and disclosures in the financial statements An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation We believe that our audit provides a reasonable basis for our opinions

In our opinion the financial statements referred to above present fairly in all material respects the respective financial position of the governmental activities each major fund and the aggregate remaining fund information of Grand Rapids Charter Township Michigan as of December 312008 and the respective changes in financial position and where applicable cash flows thereof for the year then ended in conformity with US generally accepted accounting principles

The managements discussion and analysis and the budgetary comparison information as listed in the contents are not required parts of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board We have applied certain limited procedures which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information However we did not audit the information and express no opinion on it

CONTENTS

Page

MANAGEMENTS DISCUSSION AND ANALYSIS i-vi

INDEPENDENT AUDITORS REPORT 3-4

BASIC FINANCIAL STATEMENTS Government-wide financial statements

Statement of net assets 5 Statement of activities 6

Fund financial statements Balance sheet - governmental funds 7 Statement of revenues expenditures and changes in fund balances shy

governmental funds 8-9 Statement of net assets - proprietary fund 10 Statement of revenues expenses and changes in fund net assets - proprietary fund 11 Statement of cash flows - proprietary fund 12 Statement of fiduciary net assets - Agency Funds 13

Notes to financial statements 14 - 22

REQUIRED SUPPLEMENTARY INFORMATION Budgetary comparison schedules

General Fund 23 - 24 Improvement Revolving Fund 25 Public Safety Fund 26 LeonardCrahenForesthili Pathways Fund 27

SUPPLEMENTARY INFORMATION Combining balance sheet - non major governmental funds 28 Combining statement of revenues expenditures and changes in find balances shy

nonmajor governmental funds 29

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS

The following discussion and analysis is intended as a narrative overview of the Grand Rapids Charter Township Michigans operations over the fiscal year and its financial condition on December 312008

FINANCIAL HIGHLIGHTS

bull The Townships total net assets increased $674070 (6 percent) as a result of this years operations

bull Of the $11662686 total net assets reported $3920475 is unrestricted or available to be used to meet future operating and capital improvement needs

bull The General Funds unreserved undesignated fund balance at the end of the fiscal year was $869541 which represents 33 percent of the actual total General Fund expenditures for the fiscal year

Overview of the financial statements

This discussion and analysis introduces the Townships basic financial statements that follow this section These financial statements are presented to comply with Governmental Accounting Standards Board Statement No 34 The Townships annual financial report is comprised of four parts managements discussion and analysis the basic financial statements required supplementary information and an optional section that presents combining statements for nonmajor governmental funds The basic financial statements include two kinds of statements that present different views of the Township

bull The first two statements are government-wide financial statements that provide both long-term and short-term information about the Townships overall financial status

bull The remaining statements are fund financial statements that focus on individual parts of the Township government reporting the Townships operations in more detail than the governmentshywide financial statements o The governmental funds statements tell how general government services like public works

and public safety were financed in the short term as well as what remains for future spending

o Proprietary fund statements offer short- and long-term financial information about the activities the government operates like a business The Townships lone proprietary fund accounts for its building inspections department

The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data The financial statements are followed by a section of required supplementary information that further explains and supports the information in the financial statements

A comparative analysis of the basic financial statements for 2008 and 2007 is also presented

-ishy

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

Government-wide statements

The government-wide financial statements report information about the Township as a whole using accounting methods similar to those used by private-sector companies The statement of net assets includes all of the Townships assets and liabilities All of the current years revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid

The two government-wide statements report the Townships net assets and how they have changed Net assets - the difference between the Townships assets and liabilities - is one way to measure the Townships financial health or position

bull Over time increases or decreases in the Townships net assets are an indicator of whether its financial health is improving or deteriorating respectively

bull To assess the overall health of the Township you need to consider additional nonfinancial factors such as changes in the Townships property tax base and the condition of the Townships roads

The governmen~-wide financial statements of the Township are divided into two categories

bull Governmentalmiddot activities - These activities include functions most commonly associated with government (eg general government public safety public works etc) Property taxes and intergovernmental revenuesmiddot generally fund these services

bull Business-type activities - Tbe Township charges fees to customers to help it cover the costs of operating the building inspections department r

Fund financial statemehts

The fund financial statements provide more detailed information about the Townships most Significant funds - not the Township as a whole Funds are accounting devices that the Township uses to keep track of sp~cifi~ sources cgtf funding and spending for particular purposes

bull Some funds are required by state law and by grant agreements bull The Township Board establishes other funds to control and manage money for particular purposes

(like sewer and water improvements lor to show that it is properly using certain taxes and other revenues (like the street lighting and lakes management special assessments)

The Township has three kinds of funds

bull Governmental funds Most of the Townships basic services are included in governmental funds which focus on (1) how cash and other financial assets that can be readily converted to cash flows in and out and (2) the balances left at year end that are available for spending Consequently the governmental funds statements provide a detailed short-term view that helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the Townships programs Because this information does not encompass the additional long-term focus of the government-wide statements we provide additional information at the bottom of the governmental funds statement that explains the relationship between them

-iishy

I

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

bull Proprietary funds Services for which the Township charges customers a fee are generally reported in proprietary funds Proprietary funds like the government-wide statements provide both long- and short-term financial information

bull Fiduciary funds These funds are used to account for the collection and disbursement of resources primarily taxes for the benefit of parties outside the government The Township is responsible for ensuring that the assets reported in these funds are used for their intended purpose The Townships fiduciary balances are reported in a separate Statement of Fiduciary Net Assets shyFiduciary Funds We exclude these activities from the Townships government-wide financial statements because the Township cannot use these assets to finance its operations

FINANCIAL ANALYSIS OF THE TOWNSHIP AS A WHOLE

Net assets Total net assets at the end of the fiscal year were $11662686 an increase of 6 compared to the prior year However $7483378 of this total is invested in capital assets and $258833 is restricted for various purposes Consequently unrestricted net assets were $392047534 of the total

Condensed financial information Net assets

Governmental activities

2008 2007

Current and other assets $ 5827007 $ 4967381 Capital assets 7483378 7601546

Total assets 13310385 12568927

Liabilities other than long-term debt 1647699 1580311

Net assets Invested in capital assets 7483378 7601546 Restricted 258833 106474 Unrestricted 3920475 3280596

Total net assets $ 11 1662686 $ 10988616

-iijshy

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

Changes in net assets The Townships total revenues are $3587790 Approximately 39 of the Townships revenues come from property taxes while state revenue sharing represents 28 About 17 of total revenues come from charges for services

Condensed financial information Changes in net assets

Governmental activities

Program revenues Charges for services Operating grants and contributions Capital grants

General revenues Property taxes State shared revenue Cable franchise fees Interest income Other

-Special item

Gain on sale of land

Total reventles

Expenses Legislative General government Public safety Public wprks Health anti welfare Community and economic development Recreation and culture

Total expenses

Increase in net assets

2008

$ 454055 115970

79916

1386749 1000880

168242 150033

15857

216088

3587790

20632 944981

1454713 223195

9769 97627 74893

2913720

$ 6741deg70

2007

$ 410129 59303 74436

1297755 I940957 182066 208816

10986

r 3184448

19764 774131

1462900 389732 93883

112325 I 66805

2919540 I $ 264908

-ivshy

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

Governmental activities Governmental activities increased the Townships net assets by $674070 in the current year compared to a $264908 increase in the prior year The Township experienced a significant gain on the sale of land in the amount of $216088 in the current year which augmented the increase in net assets Program and general revenues also increased by $187254 while expenses decreased by $5820 to further enhance the increase in net assets compared to the prior year The increase in revenue in the current year can be attributed primarily to the following significant items

bull The receipt of $100000 from Kent County that is restricted for maintenance of the courthouse property

bull A 3 increase in taxable value generated nearly $89000 in additional tax revenues bull An increase in state shared revenue of nearly $60000

The cost of all governmental activities this year was $2913720 compared to $2919540 in 2007 After subtracting the direct charges to those who directly benefited from the programs ($454055) and operating and capital grants ($195886) the public benefit portion covered by property taxes state shared revenue and other general revenues was $2263779 in 2008 compared to $2375672 in 2007

FINANCIAL ANALYSIS OF THE TOWNSHIPS FUNDS

At December 312008 the Townships governmental funds reported total fund balances of $3942976 an increase of $803866 over last year

The fund balance of the General Fund at year end was $869541 which represents a decrease of $325802 in 2008 The fund balance decreased due to increases in general government expenditures ($185000) and public works ($153000) expenditures General government expenditures increased due to an increase in legal fees ($75000) and computer support fees ($29000) and public works expenditures increased due to an increase in road improvement costs

The fund balance of the Improvement Revolving Fund at year end was $2880875 The funds equity increased by $980633 in 2008 primarily due to a sale of land that generated revenue of $891 088

General Fund budgetary highlights

Revenues were $180051 higher than budgeted as several revenue sources exceeded expectations Property tax revenues ($30159) state grants ($89283) charges for services ($52477) and interest income ($30547) were all more than expected

General Fund expenditures were $157570 less than the amounts appropriated because of the Townships continued ability to control operating costs Fire Department costs were the most notable variance in that actual costs were $78347 less than appropriated

These variances resulted in a $336980 positive budget variance and a $325802 decrease in fund balance compared to a budgeted decrease of $662692

-vshy

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

Capital assets

At December 31 2008 the Township had invested $7483378 in various capital assets including its land buildings equipment and vehicles This amount represents a net decrease of $118168 in 2008

This years major capital asset additions included

bull Costs incurred to develop a bike trail in the amount of $507549 bull Costs associated with shared road costs in the amount of $263373

Economic condition and outlook

The current economic condition has dramatically deteriorated during the last year on both the national and state level There are very few indications of an economic turnaround nationally and most experts expect Michigan to lag behind any national recovery The negative affect of the continuing recession on Grand Rapids Charter Township relates to our revenue sources for 2010 and 2011 and are as follows

a) The probable deflation of real property values in 2009 with lower property tax collection for 2010 and 2011 will be most likely be in the 1 to 2 range annually

-traquo High unemployment will likely result in less consumer spending and decrease state tax receipts that will impact the revenue we r~ceive from State Constitutional Revenue Sharing by as much as 10

c) The further slowdown in construction will likely result in less inspection fee revenue of approximately 25 this year and remain flat for 2010 with slow growth returning in 2011

d) The interest we earn on our investments wilr likely average in the 25 annual range which is oneshythird less than 2008 with no anticipated rebound in interest rates until late 2010

The impact for the 2009 Grand Rapids Charter Township budget is an expected revenue drop of 38 from the 2008 level The Township will likely see an additional decline of 6 in 2010 before stabilizing for the 2011 budget year Grand Rapids Charter Township expects to weather the economic storm without increasing the burden on our residents of additional taxes or fees We will take the necessary steps to ~ontrol costs and provide essential services to live with the revenue projections

Contacting the Townships financial management

This financial report is designed to provide a general overview of the Townships finances to its citizens customers investors and creditors and to demonstrate the Townships accountability for the money it receives Questions regarding any information provided in this report or request for additional financial information should be addressed to bull -~

Grand Rapids Charter Township Phone (616) 361-7391 Michael DeVries Supervisor 1836 East 8eltline NE Grand Rapids MI 49525-4594

I

I

I r

I I l

-vishy

246 E Kilgore Road Siegfried Crandall PC Kalamazoo MI 49002-5599 wwwsiegfriedcrandallcom

Certified Public Accountants amp Advisors Telephone 269-381-4970

800-876-0979 Fax 269-349-1344

INDEPENDENT AUDITORS REPORT

Board of Trustees Grand Rapids Charter Township Michigan

We have audited the accompanying financial statements of the governmental activities each major fund and the aggregate remaining fund information of Grand Rapids Charter Township Michigan as of December 31 2008 and for the year then ended which collectively comprise the Townships basic financial statements as listed in the contents These financial statements are the responsibility of the Grand Rapids Charter Township Michigans management Our responsibility is to express opinions on these financial statements based on our audit

We conducted our audit in accordance with US generally accepted auditing standards Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement An audit includes examining on a test basis evidence supporting the amounts and disclosures in the financial statements An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation We believe that our audit provides a reasonable basis for our opinions

In our opinion the financial statements referred to above present fairly in all material respects the respective financial position of the governmental activities each major fund and the aggregate remaining fund information of Grand Rapids Charter Township Michigan as of December 312008 and the respective changes in financial position and where applicable cash flows thereof for the year then ended in conformity with US generally accepted accounting principles

The managements discussion and analysis and the budgetary comparison information as listed in the contents are not required parts of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board We have applied certain limited procedures which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information However we did not audit the information and express no opinion on it

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS

The following discussion and analysis is intended as a narrative overview of the Grand Rapids Charter Township Michigans operations over the fiscal year and its financial condition on December 312008

FINANCIAL HIGHLIGHTS

bull The Townships total net assets increased $674070 (6 percent) as a result of this years operations

bull Of the $11662686 total net assets reported $3920475 is unrestricted or available to be used to meet future operating and capital improvement needs

bull The General Funds unreserved undesignated fund balance at the end of the fiscal year was $869541 which represents 33 percent of the actual total General Fund expenditures for the fiscal year

Overview of the financial statements

This discussion and analysis introduces the Townships basic financial statements that follow this section These financial statements are presented to comply with Governmental Accounting Standards Board Statement No 34 The Townships annual financial report is comprised of four parts managements discussion and analysis the basic financial statements required supplementary information and an optional section that presents combining statements for nonmajor governmental funds The basic financial statements include two kinds of statements that present different views of the Township

bull The first two statements are government-wide financial statements that provide both long-term and short-term information about the Townships overall financial status

bull The remaining statements are fund financial statements that focus on individual parts of the Township government reporting the Townships operations in more detail than the governmentshywide financial statements o The governmental funds statements tell how general government services like public works

and public safety were financed in the short term as well as what remains for future spending

o Proprietary fund statements offer short- and long-term financial information about the activities the government operates like a business The Townships lone proprietary fund accounts for its building inspections department

The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data The financial statements are followed by a section of required supplementary information that further explains and supports the information in the financial statements

A comparative analysis of the basic financial statements for 2008 and 2007 is also presented

-ishy

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

Government-wide statements

The government-wide financial statements report information about the Township as a whole using accounting methods similar to those used by private-sector companies The statement of net assets includes all of the Townships assets and liabilities All of the current years revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid

The two government-wide statements report the Townships net assets and how they have changed Net assets - the difference between the Townships assets and liabilities - is one way to measure the Townships financial health or position

bull Over time increases or decreases in the Townships net assets are an indicator of whether its financial health is improving or deteriorating respectively

bull To assess the overall health of the Township you need to consider additional nonfinancial factors such as changes in the Townships property tax base and the condition of the Townships roads

The governmen~-wide financial statements of the Township are divided into two categories

bull Governmentalmiddot activities - These activities include functions most commonly associated with government (eg general government public safety public works etc) Property taxes and intergovernmental revenuesmiddot generally fund these services

bull Business-type activities - Tbe Township charges fees to customers to help it cover the costs of operating the building inspections department r

Fund financial statemehts

The fund financial statements provide more detailed information about the Townships most Significant funds - not the Township as a whole Funds are accounting devices that the Township uses to keep track of sp~cifi~ sources cgtf funding and spending for particular purposes

bull Some funds are required by state law and by grant agreements bull The Township Board establishes other funds to control and manage money for particular purposes

(like sewer and water improvements lor to show that it is properly using certain taxes and other revenues (like the street lighting and lakes management special assessments)

The Township has three kinds of funds

bull Governmental funds Most of the Townships basic services are included in governmental funds which focus on (1) how cash and other financial assets that can be readily converted to cash flows in and out and (2) the balances left at year end that are available for spending Consequently the governmental funds statements provide a detailed short-term view that helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the Townships programs Because this information does not encompass the additional long-term focus of the government-wide statements we provide additional information at the bottom of the governmental funds statement that explains the relationship between them

-iishy

I

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

bull Proprietary funds Services for which the Township charges customers a fee are generally reported in proprietary funds Proprietary funds like the government-wide statements provide both long- and short-term financial information

bull Fiduciary funds These funds are used to account for the collection and disbursement of resources primarily taxes for the benefit of parties outside the government The Township is responsible for ensuring that the assets reported in these funds are used for their intended purpose The Townships fiduciary balances are reported in a separate Statement of Fiduciary Net Assets shyFiduciary Funds We exclude these activities from the Townships government-wide financial statements because the Township cannot use these assets to finance its operations

FINANCIAL ANALYSIS OF THE TOWNSHIP AS A WHOLE

Net assets Total net assets at the end of the fiscal year were $11662686 an increase of 6 compared to the prior year However $7483378 of this total is invested in capital assets and $258833 is restricted for various purposes Consequently unrestricted net assets were $392047534 of the total

Condensed financial information Net assets

Governmental activities

2008 2007

Current and other assets $ 5827007 $ 4967381 Capital assets 7483378 7601546

Total assets 13310385 12568927

Liabilities other than long-term debt 1647699 1580311

Net assets Invested in capital assets 7483378 7601546 Restricted 258833 106474 Unrestricted 3920475 3280596

Total net assets $ 11 1662686 $ 10988616

-iijshy

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

Changes in net assets The Townships total revenues are $3587790 Approximately 39 of the Townships revenues come from property taxes while state revenue sharing represents 28 About 17 of total revenues come from charges for services

Condensed financial information Changes in net assets

Governmental activities

Program revenues Charges for services Operating grants and contributions Capital grants

General revenues Property taxes State shared revenue Cable franchise fees Interest income Other

-Special item

Gain on sale of land

Total reventles

Expenses Legislative General government Public safety Public wprks Health anti welfare Community and economic development Recreation and culture

Total expenses

Increase in net assets

2008

$ 454055 115970

79916

1386749 1000880

168242 150033

15857

216088

3587790

20632 944981

1454713 223195

9769 97627 74893

2913720

$ 6741deg70

2007

$ 410129 59303 74436

1297755 I940957 182066 208816

10986

r 3184448

19764 774131

1462900 389732 93883

112325 I 66805

2919540 I $ 264908

-ivshy

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

Governmental activities Governmental activities increased the Townships net assets by $674070 in the current year compared to a $264908 increase in the prior year The Township experienced a significant gain on the sale of land in the amount of $216088 in the current year which augmented the increase in net assets Program and general revenues also increased by $187254 while expenses decreased by $5820 to further enhance the increase in net assets compared to the prior year The increase in revenue in the current year can be attributed primarily to the following significant items

bull The receipt of $100000 from Kent County that is restricted for maintenance of the courthouse property

bull A 3 increase in taxable value generated nearly $89000 in additional tax revenues bull An increase in state shared revenue of nearly $60000

The cost of all governmental activities this year was $2913720 compared to $2919540 in 2007 After subtracting the direct charges to those who directly benefited from the programs ($454055) and operating and capital grants ($195886) the public benefit portion covered by property taxes state shared revenue and other general revenues was $2263779 in 2008 compared to $2375672 in 2007

FINANCIAL ANALYSIS OF THE TOWNSHIPS FUNDS

At December 312008 the Townships governmental funds reported total fund balances of $3942976 an increase of $803866 over last year

The fund balance of the General Fund at year end was $869541 which represents a decrease of $325802 in 2008 The fund balance decreased due to increases in general government expenditures ($185000) and public works ($153000) expenditures General government expenditures increased due to an increase in legal fees ($75000) and computer support fees ($29000) and public works expenditures increased due to an increase in road improvement costs

The fund balance of the Improvement Revolving Fund at year end was $2880875 The funds equity increased by $980633 in 2008 primarily due to a sale of land that generated revenue of $891 088

General Fund budgetary highlights

Revenues were $180051 higher than budgeted as several revenue sources exceeded expectations Property tax revenues ($30159) state grants ($89283) charges for services ($52477) and interest income ($30547) were all more than expected

General Fund expenditures were $157570 less than the amounts appropriated because of the Townships continued ability to control operating costs Fire Department costs were the most notable variance in that actual costs were $78347 less than appropriated

These variances resulted in a $336980 positive budget variance and a $325802 decrease in fund balance compared to a budgeted decrease of $662692

-vshy

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

Capital assets

At December 31 2008 the Township had invested $7483378 in various capital assets including its land buildings equipment and vehicles This amount represents a net decrease of $118168 in 2008

This years major capital asset additions included

bull Costs incurred to develop a bike trail in the amount of $507549 bull Costs associated with shared road costs in the amount of $263373

Economic condition and outlook

The current economic condition has dramatically deteriorated during the last year on both the national and state level There are very few indications of an economic turnaround nationally and most experts expect Michigan to lag behind any national recovery The negative affect of the continuing recession on Grand Rapids Charter Township relates to our revenue sources for 2010 and 2011 and are as follows

a) The probable deflation of real property values in 2009 with lower property tax collection for 2010 and 2011 will be most likely be in the 1 to 2 range annually

-traquo High unemployment will likely result in less consumer spending and decrease state tax receipts that will impact the revenue we r~ceive from State Constitutional Revenue Sharing by as much as 10

c) The further slowdown in construction will likely result in less inspection fee revenue of approximately 25 this year and remain flat for 2010 with slow growth returning in 2011

d) The interest we earn on our investments wilr likely average in the 25 annual range which is oneshythird less than 2008 with no anticipated rebound in interest rates until late 2010

The impact for the 2009 Grand Rapids Charter Township budget is an expected revenue drop of 38 from the 2008 level The Township will likely see an additional decline of 6 in 2010 before stabilizing for the 2011 budget year Grand Rapids Charter Township expects to weather the economic storm without increasing the burden on our residents of additional taxes or fees We will take the necessary steps to ~ontrol costs and provide essential services to live with the revenue projections

Contacting the Townships financial management

This financial report is designed to provide a general overview of the Townships finances to its citizens customers investors and creditors and to demonstrate the Townships accountability for the money it receives Questions regarding any information provided in this report or request for additional financial information should be addressed to bull -~

Grand Rapids Charter Township Phone (616) 361-7391 Michael DeVries Supervisor 1836 East 8eltline NE Grand Rapids MI 49525-4594

I

I

I r

I I l

-vishy

246 E Kilgore Road Siegfried Crandall PC Kalamazoo MI 49002-5599 wwwsiegfriedcrandallcom

Certified Public Accountants amp Advisors Telephone 269-381-4970

800-876-0979 Fax 269-349-1344

INDEPENDENT AUDITORS REPORT

Board of Trustees Grand Rapids Charter Township Michigan

We have audited the accompanying financial statements of the governmental activities each major fund and the aggregate remaining fund information of Grand Rapids Charter Township Michigan as of December 31 2008 and for the year then ended which collectively comprise the Townships basic financial statements as listed in the contents These financial statements are the responsibility of the Grand Rapids Charter Township Michigans management Our responsibility is to express opinions on these financial statements based on our audit

We conducted our audit in accordance with US generally accepted auditing standards Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement An audit includes examining on a test basis evidence supporting the amounts and disclosures in the financial statements An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation We believe that our audit provides a reasonable basis for our opinions

In our opinion the financial statements referred to above present fairly in all material respects the respective financial position of the governmental activities each major fund and the aggregate remaining fund information of Grand Rapids Charter Township Michigan as of December 312008 and the respective changes in financial position and where applicable cash flows thereof for the year then ended in conformity with US generally accepted accounting principles

The managements discussion and analysis and the budgetary comparison information as listed in the contents are not required parts of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board We have applied certain limited procedures which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information However we did not audit the information and express no opinion on it

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

Government-wide statements

The government-wide financial statements report information about the Township as a whole using accounting methods similar to those used by private-sector companies The statement of net assets includes all of the Townships assets and liabilities All of the current years revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid

The two government-wide statements report the Townships net assets and how they have changed Net assets - the difference between the Townships assets and liabilities - is one way to measure the Townships financial health or position

bull Over time increases or decreases in the Townships net assets are an indicator of whether its financial health is improving or deteriorating respectively

bull To assess the overall health of the Township you need to consider additional nonfinancial factors such as changes in the Townships property tax base and the condition of the Townships roads

The governmen~-wide financial statements of the Township are divided into two categories

bull Governmentalmiddot activities - These activities include functions most commonly associated with government (eg general government public safety public works etc) Property taxes and intergovernmental revenuesmiddot generally fund these services

bull Business-type activities - Tbe Township charges fees to customers to help it cover the costs of operating the building inspections department r

Fund financial statemehts

The fund financial statements provide more detailed information about the Townships most Significant funds - not the Township as a whole Funds are accounting devices that the Township uses to keep track of sp~cifi~ sources cgtf funding and spending for particular purposes

bull Some funds are required by state law and by grant agreements bull The Township Board establishes other funds to control and manage money for particular purposes

(like sewer and water improvements lor to show that it is properly using certain taxes and other revenues (like the street lighting and lakes management special assessments)

The Township has three kinds of funds

bull Governmental funds Most of the Townships basic services are included in governmental funds which focus on (1) how cash and other financial assets that can be readily converted to cash flows in and out and (2) the balances left at year end that are available for spending Consequently the governmental funds statements provide a detailed short-term view that helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the Townships programs Because this information does not encompass the additional long-term focus of the government-wide statements we provide additional information at the bottom of the governmental funds statement that explains the relationship between them

-iishy

I

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

bull Proprietary funds Services for which the Township charges customers a fee are generally reported in proprietary funds Proprietary funds like the government-wide statements provide both long- and short-term financial information

bull Fiduciary funds These funds are used to account for the collection and disbursement of resources primarily taxes for the benefit of parties outside the government The Township is responsible for ensuring that the assets reported in these funds are used for their intended purpose The Townships fiduciary balances are reported in a separate Statement of Fiduciary Net Assets shyFiduciary Funds We exclude these activities from the Townships government-wide financial statements because the Township cannot use these assets to finance its operations

FINANCIAL ANALYSIS OF THE TOWNSHIP AS A WHOLE

Net assets Total net assets at the end of the fiscal year were $11662686 an increase of 6 compared to the prior year However $7483378 of this total is invested in capital assets and $258833 is restricted for various purposes Consequently unrestricted net assets were $392047534 of the total

Condensed financial information Net assets

Governmental activities

2008 2007

Current and other assets $ 5827007 $ 4967381 Capital assets 7483378 7601546

Total assets 13310385 12568927

Liabilities other than long-term debt 1647699 1580311

Net assets Invested in capital assets 7483378 7601546 Restricted 258833 106474 Unrestricted 3920475 3280596

Total net assets $ 11 1662686 $ 10988616

-iijshy

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

Changes in net assets The Townships total revenues are $3587790 Approximately 39 of the Townships revenues come from property taxes while state revenue sharing represents 28 About 17 of total revenues come from charges for services

Condensed financial information Changes in net assets

Governmental activities

Program revenues Charges for services Operating grants and contributions Capital grants

General revenues Property taxes State shared revenue Cable franchise fees Interest income Other

-Special item

Gain on sale of land

Total reventles

Expenses Legislative General government Public safety Public wprks Health anti welfare Community and economic development Recreation and culture

Total expenses

Increase in net assets

2008

$ 454055 115970

79916

1386749 1000880

168242 150033

15857

216088

3587790

20632 944981

1454713 223195

9769 97627 74893

2913720

$ 6741deg70

2007

$ 410129 59303 74436

1297755 I940957 182066 208816

10986

r 3184448

19764 774131

1462900 389732 93883

112325 I 66805

2919540 I $ 264908

-ivshy

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

Governmental activities Governmental activities increased the Townships net assets by $674070 in the current year compared to a $264908 increase in the prior year The Township experienced a significant gain on the sale of land in the amount of $216088 in the current year which augmented the increase in net assets Program and general revenues also increased by $187254 while expenses decreased by $5820 to further enhance the increase in net assets compared to the prior year The increase in revenue in the current year can be attributed primarily to the following significant items

bull The receipt of $100000 from Kent County that is restricted for maintenance of the courthouse property

bull A 3 increase in taxable value generated nearly $89000 in additional tax revenues bull An increase in state shared revenue of nearly $60000

The cost of all governmental activities this year was $2913720 compared to $2919540 in 2007 After subtracting the direct charges to those who directly benefited from the programs ($454055) and operating and capital grants ($195886) the public benefit portion covered by property taxes state shared revenue and other general revenues was $2263779 in 2008 compared to $2375672 in 2007

FINANCIAL ANALYSIS OF THE TOWNSHIPS FUNDS

At December 312008 the Townships governmental funds reported total fund balances of $3942976 an increase of $803866 over last year

The fund balance of the General Fund at year end was $869541 which represents a decrease of $325802 in 2008 The fund balance decreased due to increases in general government expenditures ($185000) and public works ($153000) expenditures General government expenditures increased due to an increase in legal fees ($75000) and computer support fees ($29000) and public works expenditures increased due to an increase in road improvement costs

The fund balance of the Improvement Revolving Fund at year end was $2880875 The funds equity increased by $980633 in 2008 primarily due to a sale of land that generated revenue of $891 088

General Fund budgetary highlights

Revenues were $180051 higher than budgeted as several revenue sources exceeded expectations Property tax revenues ($30159) state grants ($89283) charges for services ($52477) and interest income ($30547) were all more than expected

General Fund expenditures were $157570 less than the amounts appropriated because of the Townships continued ability to control operating costs Fire Department costs were the most notable variance in that actual costs were $78347 less than appropriated

These variances resulted in a $336980 positive budget variance and a $325802 decrease in fund balance compared to a budgeted decrease of $662692

-vshy

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

Capital assets

At December 31 2008 the Township had invested $7483378 in various capital assets including its land buildings equipment and vehicles This amount represents a net decrease of $118168 in 2008

This years major capital asset additions included

bull Costs incurred to develop a bike trail in the amount of $507549 bull Costs associated with shared road costs in the amount of $263373

Economic condition and outlook

The current economic condition has dramatically deteriorated during the last year on both the national and state level There are very few indications of an economic turnaround nationally and most experts expect Michigan to lag behind any national recovery The negative affect of the continuing recession on Grand Rapids Charter Township relates to our revenue sources for 2010 and 2011 and are as follows

a) The probable deflation of real property values in 2009 with lower property tax collection for 2010 and 2011 will be most likely be in the 1 to 2 range annually

-traquo High unemployment will likely result in less consumer spending and decrease state tax receipts that will impact the revenue we r~ceive from State Constitutional Revenue Sharing by as much as 10

c) The further slowdown in construction will likely result in less inspection fee revenue of approximately 25 this year and remain flat for 2010 with slow growth returning in 2011

d) The interest we earn on our investments wilr likely average in the 25 annual range which is oneshythird less than 2008 with no anticipated rebound in interest rates until late 2010

The impact for the 2009 Grand Rapids Charter Township budget is an expected revenue drop of 38 from the 2008 level The Township will likely see an additional decline of 6 in 2010 before stabilizing for the 2011 budget year Grand Rapids Charter Township expects to weather the economic storm without increasing the burden on our residents of additional taxes or fees We will take the necessary steps to ~ontrol costs and provide essential services to live with the revenue projections

Contacting the Townships financial management

This financial report is designed to provide a general overview of the Townships finances to its citizens customers investors and creditors and to demonstrate the Townships accountability for the money it receives Questions regarding any information provided in this report or request for additional financial information should be addressed to bull -~

Grand Rapids Charter Township Phone (616) 361-7391 Michael DeVries Supervisor 1836 East 8eltline NE Grand Rapids MI 49525-4594

I

I

I r

I I l

-vishy

246 E Kilgore Road Siegfried Crandall PC Kalamazoo MI 49002-5599 wwwsiegfriedcrandallcom

Certified Public Accountants amp Advisors Telephone 269-381-4970

800-876-0979 Fax 269-349-1344

INDEPENDENT AUDITORS REPORT

Board of Trustees Grand Rapids Charter Township Michigan

We have audited the accompanying financial statements of the governmental activities each major fund and the aggregate remaining fund information of Grand Rapids Charter Township Michigan as of December 31 2008 and for the year then ended which collectively comprise the Townships basic financial statements as listed in the contents These financial statements are the responsibility of the Grand Rapids Charter Township Michigans management Our responsibility is to express opinions on these financial statements based on our audit

We conducted our audit in accordance with US generally accepted auditing standards Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement An audit includes examining on a test basis evidence supporting the amounts and disclosures in the financial statements An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation We believe that our audit provides a reasonable basis for our opinions

In our opinion the financial statements referred to above present fairly in all material respects the respective financial position of the governmental activities each major fund and the aggregate remaining fund information of Grand Rapids Charter Township Michigan as of December 312008 and the respective changes in financial position and where applicable cash flows thereof for the year then ended in conformity with US generally accepted accounting principles

The managements discussion and analysis and the budgetary comparison information as listed in the contents are not required parts of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board We have applied certain limited procedures which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information However we did not audit the information and express no opinion on it

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

bull Proprietary funds Services for which the Township charges customers a fee are generally reported in proprietary funds Proprietary funds like the government-wide statements provide both long- and short-term financial information

bull Fiduciary funds These funds are used to account for the collection and disbursement of resources primarily taxes for the benefit of parties outside the government The Township is responsible for ensuring that the assets reported in these funds are used for their intended purpose The Townships fiduciary balances are reported in a separate Statement of Fiduciary Net Assets shyFiduciary Funds We exclude these activities from the Townships government-wide financial statements because the Township cannot use these assets to finance its operations

FINANCIAL ANALYSIS OF THE TOWNSHIP AS A WHOLE

Net assets Total net assets at the end of the fiscal year were $11662686 an increase of 6 compared to the prior year However $7483378 of this total is invested in capital assets and $258833 is restricted for various purposes Consequently unrestricted net assets were $392047534 of the total

Condensed financial information Net assets

Governmental activities

2008 2007

Current and other assets $ 5827007 $ 4967381 Capital assets 7483378 7601546

Total assets 13310385 12568927

Liabilities other than long-term debt 1647699 1580311

Net assets Invested in capital assets 7483378 7601546 Restricted 258833 106474 Unrestricted 3920475 3280596

Total net assets $ 11 1662686 $ 10988616

-iijshy

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

Changes in net assets The Townships total revenues are $3587790 Approximately 39 of the Townships revenues come from property taxes while state revenue sharing represents 28 About 17 of total revenues come from charges for services

Condensed financial information Changes in net assets

Governmental activities

Program revenues Charges for services Operating grants and contributions Capital grants

General revenues Property taxes State shared revenue Cable franchise fees Interest income Other

-Special item

Gain on sale of land

Total reventles

Expenses Legislative General government Public safety Public wprks Health anti welfare Community and economic development Recreation and culture

Total expenses

Increase in net assets

2008

$ 454055 115970

79916

1386749 1000880

168242 150033

15857

216088

3587790

20632 944981

1454713 223195

9769 97627 74893

2913720

$ 6741deg70

2007

$ 410129 59303 74436

1297755 I940957 182066 208816

10986

r 3184448

19764 774131

1462900 389732 93883

112325 I 66805

2919540 I $ 264908

-ivshy

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

Governmental activities Governmental activities increased the Townships net assets by $674070 in the current year compared to a $264908 increase in the prior year The Township experienced a significant gain on the sale of land in the amount of $216088 in the current year which augmented the increase in net assets Program and general revenues also increased by $187254 while expenses decreased by $5820 to further enhance the increase in net assets compared to the prior year The increase in revenue in the current year can be attributed primarily to the following significant items

bull The receipt of $100000 from Kent County that is restricted for maintenance of the courthouse property

bull A 3 increase in taxable value generated nearly $89000 in additional tax revenues bull An increase in state shared revenue of nearly $60000

The cost of all governmental activities this year was $2913720 compared to $2919540 in 2007 After subtracting the direct charges to those who directly benefited from the programs ($454055) and operating and capital grants ($195886) the public benefit portion covered by property taxes state shared revenue and other general revenues was $2263779 in 2008 compared to $2375672 in 2007

FINANCIAL ANALYSIS OF THE TOWNSHIPS FUNDS

At December 312008 the Townships governmental funds reported total fund balances of $3942976 an increase of $803866 over last year

The fund balance of the General Fund at year end was $869541 which represents a decrease of $325802 in 2008 The fund balance decreased due to increases in general government expenditures ($185000) and public works ($153000) expenditures General government expenditures increased due to an increase in legal fees ($75000) and computer support fees ($29000) and public works expenditures increased due to an increase in road improvement costs

The fund balance of the Improvement Revolving Fund at year end was $2880875 The funds equity increased by $980633 in 2008 primarily due to a sale of land that generated revenue of $891 088

General Fund budgetary highlights

Revenues were $180051 higher than budgeted as several revenue sources exceeded expectations Property tax revenues ($30159) state grants ($89283) charges for services ($52477) and interest income ($30547) were all more than expected

General Fund expenditures were $157570 less than the amounts appropriated because of the Townships continued ability to control operating costs Fire Department costs were the most notable variance in that actual costs were $78347 less than appropriated

These variances resulted in a $336980 positive budget variance and a $325802 decrease in fund balance compared to a budgeted decrease of $662692

-vshy

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

Capital assets

At December 31 2008 the Township had invested $7483378 in various capital assets including its land buildings equipment and vehicles This amount represents a net decrease of $118168 in 2008

This years major capital asset additions included

bull Costs incurred to develop a bike trail in the amount of $507549 bull Costs associated with shared road costs in the amount of $263373

Economic condition and outlook

The current economic condition has dramatically deteriorated during the last year on both the national and state level There are very few indications of an economic turnaround nationally and most experts expect Michigan to lag behind any national recovery The negative affect of the continuing recession on Grand Rapids Charter Township relates to our revenue sources for 2010 and 2011 and are as follows

a) The probable deflation of real property values in 2009 with lower property tax collection for 2010 and 2011 will be most likely be in the 1 to 2 range annually

-traquo High unemployment will likely result in less consumer spending and decrease state tax receipts that will impact the revenue we r~ceive from State Constitutional Revenue Sharing by as much as 10

c) The further slowdown in construction will likely result in less inspection fee revenue of approximately 25 this year and remain flat for 2010 with slow growth returning in 2011

d) The interest we earn on our investments wilr likely average in the 25 annual range which is oneshythird less than 2008 with no anticipated rebound in interest rates until late 2010

The impact for the 2009 Grand Rapids Charter Township budget is an expected revenue drop of 38 from the 2008 level The Township will likely see an additional decline of 6 in 2010 before stabilizing for the 2011 budget year Grand Rapids Charter Township expects to weather the economic storm without increasing the burden on our residents of additional taxes or fees We will take the necessary steps to ~ontrol costs and provide essential services to live with the revenue projections

Contacting the Townships financial management

This financial report is designed to provide a general overview of the Townships finances to its citizens customers investors and creditors and to demonstrate the Townships accountability for the money it receives Questions regarding any information provided in this report or request for additional financial information should be addressed to bull -~

Grand Rapids Charter Township Phone (616) 361-7391 Michael DeVries Supervisor 1836 East 8eltline NE Grand Rapids MI 49525-4594

I

I

I r

I I l

-vishy

246 E Kilgore Road Siegfried Crandall PC Kalamazoo MI 49002-5599 wwwsiegfriedcrandallcom

Certified Public Accountants amp Advisors Telephone 269-381-4970

800-876-0979 Fax 269-349-1344

INDEPENDENT AUDITORS REPORT

Board of Trustees Grand Rapids Charter Township Michigan

We have audited the accompanying financial statements of the governmental activities each major fund and the aggregate remaining fund information of Grand Rapids Charter Township Michigan as of December 31 2008 and for the year then ended which collectively comprise the Townships basic financial statements as listed in the contents These financial statements are the responsibility of the Grand Rapids Charter Township Michigans management Our responsibility is to express opinions on these financial statements based on our audit

We conducted our audit in accordance with US generally accepted auditing standards Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement An audit includes examining on a test basis evidence supporting the amounts and disclosures in the financial statements An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation We believe that our audit provides a reasonable basis for our opinions

In our opinion the financial statements referred to above present fairly in all material respects the respective financial position of the governmental activities each major fund and the aggregate remaining fund information of Grand Rapids Charter Township Michigan as of December 312008 and the respective changes in financial position and where applicable cash flows thereof for the year then ended in conformity with US generally accepted accounting principles

The managements discussion and analysis and the budgetary comparison information as listed in the contents are not required parts of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board We have applied certain limited procedures which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information However we did not audit the information and express no opinion on it

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

Changes in net assets The Townships total revenues are $3587790 Approximately 39 of the Townships revenues come from property taxes while state revenue sharing represents 28 About 17 of total revenues come from charges for services

Condensed financial information Changes in net assets

Governmental activities

Program revenues Charges for services Operating grants and contributions Capital grants

General revenues Property taxes State shared revenue Cable franchise fees Interest income Other

-Special item

Gain on sale of land

Total reventles

Expenses Legislative General government Public safety Public wprks Health anti welfare Community and economic development Recreation and culture

Total expenses

Increase in net assets

2008

$ 454055 115970

79916

1386749 1000880

168242 150033

15857

216088

3587790

20632 944981

1454713 223195

9769 97627 74893

2913720

$ 6741deg70

2007

$ 410129 59303 74436

1297755 I940957 182066 208816

10986

r 3184448

19764 774131

1462900 389732 93883

112325 I 66805

2919540 I $ 264908

-ivshy

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

Governmental activities Governmental activities increased the Townships net assets by $674070 in the current year compared to a $264908 increase in the prior year The Township experienced a significant gain on the sale of land in the amount of $216088 in the current year which augmented the increase in net assets Program and general revenues also increased by $187254 while expenses decreased by $5820 to further enhance the increase in net assets compared to the prior year The increase in revenue in the current year can be attributed primarily to the following significant items

bull The receipt of $100000 from Kent County that is restricted for maintenance of the courthouse property

bull A 3 increase in taxable value generated nearly $89000 in additional tax revenues bull An increase in state shared revenue of nearly $60000

The cost of all governmental activities this year was $2913720 compared to $2919540 in 2007 After subtracting the direct charges to those who directly benefited from the programs ($454055) and operating and capital grants ($195886) the public benefit portion covered by property taxes state shared revenue and other general revenues was $2263779 in 2008 compared to $2375672 in 2007

FINANCIAL ANALYSIS OF THE TOWNSHIPS FUNDS

At December 312008 the Townships governmental funds reported total fund balances of $3942976 an increase of $803866 over last year

The fund balance of the General Fund at year end was $869541 which represents a decrease of $325802 in 2008 The fund balance decreased due to increases in general government expenditures ($185000) and public works ($153000) expenditures General government expenditures increased due to an increase in legal fees ($75000) and computer support fees ($29000) and public works expenditures increased due to an increase in road improvement costs

The fund balance of the Improvement Revolving Fund at year end was $2880875 The funds equity increased by $980633 in 2008 primarily due to a sale of land that generated revenue of $891 088

General Fund budgetary highlights

Revenues were $180051 higher than budgeted as several revenue sources exceeded expectations Property tax revenues ($30159) state grants ($89283) charges for services ($52477) and interest income ($30547) were all more than expected

General Fund expenditures were $157570 less than the amounts appropriated because of the Townships continued ability to control operating costs Fire Department costs were the most notable variance in that actual costs were $78347 less than appropriated

These variances resulted in a $336980 positive budget variance and a $325802 decrease in fund balance compared to a budgeted decrease of $662692

-vshy

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

Capital assets

At December 31 2008 the Township had invested $7483378 in various capital assets including its land buildings equipment and vehicles This amount represents a net decrease of $118168 in 2008

This years major capital asset additions included

bull Costs incurred to develop a bike trail in the amount of $507549 bull Costs associated with shared road costs in the amount of $263373

Economic condition and outlook

The current economic condition has dramatically deteriorated during the last year on both the national and state level There are very few indications of an economic turnaround nationally and most experts expect Michigan to lag behind any national recovery The negative affect of the continuing recession on Grand Rapids Charter Township relates to our revenue sources for 2010 and 2011 and are as follows

a) The probable deflation of real property values in 2009 with lower property tax collection for 2010 and 2011 will be most likely be in the 1 to 2 range annually

-traquo High unemployment will likely result in less consumer spending and decrease state tax receipts that will impact the revenue we r~ceive from State Constitutional Revenue Sharing by as much as 10

c) The further slowdown in construction will likely result in less inspection fee revenue of approximately 25 this year and remain flat for 2010 with slow growth returning in 2011

d) The interest we earn on our investments wilr likely average in the 25 annual range which is oneshythird less than 2008 with no anticipated rebound in interest rates until late 2010

The impact for the 2009 Grand Rapids Charter Township budget is an expected revenue drop of 38 from the 2008 level The Township will likely see an additional decline of 6 in 2010 before stabilizing for the 2011 budget year Grand Rapids Charter Township expects to weather the economic storm without increasing the burden on our residents of additional taxes or fees We will take the necessary steps to ~ontrol costs and provide essential services to live with the revenue projections

Contacting the Townships financial management

This financial report is designed to provide a general overview of the Townships finances to its citizens customers investors and creditors and to demonstrate the Townships accountability for the money it receives Questions regarding any information provided in this report or request for additional financial information should be addressed to bull -~

Grand Rapids Charter Township Phone (616) 361-7391 Michael DeVries Supervisor 1836 East 8eltline NE Grand Rapids MI 49525-4594

I

I

I r

I I l

-vishy

246 E Kilgore Road Siegfried Crandall PC Kalamazoo MI 49002-5599 wwwsiegfriedcrandallcom

Certified Public Accountants amp Advisors Telephone 269-381-4970

800-876-0979 Fax 269-349-1344

INDEPENDENT AUDITORS REPORT

Board of Trustees Grand Rapids Charter Township Michigan

We have audited the accompanying financial statements of the governmental activities each major fund and the aggregate remaining fund information of Grand Rapids Charter Township Michigan as of December 31 2008 and for the year then ended which collectively comprise the Townships basic financial statements as listed in the contents These financial statements are the responsibility of the Grand Rapids Charter Township Michigans management Our responsibility is to express opinions on these financial statements based on our audit

We conducted our audit in accordance with US generally accepted auditing standards Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement An audit includes examining on a test basis evidence supporting the amounts and disclosures in the financial statements An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation We believe that our audit provides a reasonable basis for our opinions

In our opinion the financial statements referred to above present fairly in all material respects the respective financial position of the governmental activities each major fund and the aggregate remaining fund information of Grand Rapids Charter Township Michigan as of December 312008 and the respective changes in financial position and where applicable cash flows thereof for the year then ended in conformity with US generally accepted accounting principles

The managements discussion and analysis and the budgetary comparison information as listed in the contents are not required parts of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board We have applied certain limited procedures which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information However we did not audit the information and express no opinion on it

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

Governmental activities Governmental activities increased the Townships net assets by $674070 in the current year compared to a $264908 increase in the prior year The Township experienced a significant gain on the sale of land in the amount of $216088 in the current year which augmented the increase in net assets Program and general revenues also increased by $187254 while expenses decreased by $5820 to further enhance the increase in net assets compared to the prior year The increase in revenue in the current year can be attributed primarily to the following significant items

bull The receipt of $100000 from Kent County that is restricted for maintenance of the courthouse property

bull A 3 increase in taxable value generated nearly $89000 in additional tax revenues bull An increase in state shared revenue of nearly $60000

The cost of all governmental activities this year was $2913720 compared to $2919540 in 2007 After subtracting the direct charges to those who directly benefited from the programs ($454055) and operating and capital grants ($195886) the public benefit portion covered by property taxes state shared revenue and other general revenues was $2263779 in 2008 compared to $2375672 in 2007

FINANCIAL ANALYSIS OF THE TOWNSHIPS FUNDS

At December 312008 the Townships governmental funds reported total fund balances of $3942976 an increase of $803866 over last year

The fund balance of the General Fund at year end was $869541 which represents a decrease of $325802 in 2008 The fund balance decreased due to increases in general government expenditures ($185000) and public works ($153000) expenditures General government expenditures increased due to an increase in legal fees ($75000) and computer support fees ($29000) and public works expenditures increased due to an increase in road improvement costs

The fund balance of the Improvement Revolving Fund at year end was $2880875 The funds equity increased by $980633 in 2008 primarily due to a sale of land that generated revenue of $891 088

General Fund budgetary highlights

Revenues were $180051 higher than budgeted as several revenue sources exceeded expectations Property tax revenues ($30159) state grants ($89283) charges for services ($52477) and interest income ($30547) were all more than expected

General Fund expenditures were $157570 less than the amounts appropriated because of the Townships continued ability to control operating costs Fire Department costs were the most notable variance in that actual costs were $78347 less than appropriated

These variances resulted in a $336980 positive budget variance and a $325802 decrease in fund balance compared to a budgeted decrease of $662692

-vshy

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

Capital assets

At December 31 2008 the Township had invested $7483378 in various capital assets including its land buildings equipment and vehicles This amount represents a net decrease of $118168 in 2008

This years major capital asset additions included

bull Costs incurred to develop a bike trail in the amount of $507549 bull Costs associated with shared road costs in the amount of $263373

Economic condition and outlook

The current economic condition has dramatically deteriorated during the last year on both the national and state level There are very few indications of an economic turnaround nationally and most experts expect Michigan to lag behind any national recovery The negative affect of the continuing recession on Grand Rapids Charter Township relates to our revenue sources for 2010 and 2011 and are as follows

a) The probable deflation of real property values in 2009 with lower property tax collection for 2010 and 2011 will be most likely be in the 1 to 2 range annually

-traquo High unemployment will likely result in less consumer spending and decrease state tax receipts that will impact the revenue we r~ceive from State Constitutional Revenue Sharing by as much as 10

c) The further slowdown in construction will likely result in less inspection fee revenue of approximately 25 this year and remain flat for 2010 with slow growth returning in 2011

d) The interest we earn on our investments wilr likely average in the 25 annual range which is oneshythird less than 2008 with no anticipated rebound in interest rates until late 2010

The impact for the 2009 Grand Rapids Charter Township budget is an expected revenue drop of 38 from the 2008 level The Township will likely see an additional decline of 6 in 2010 before stabilizing for the 2011 budget year Grand Rapids Charter Township expects to weather the economic storm without increasing the burden on our residents of additional taxes or fees We will take the necessary steps to ~ontrol costs and provide essential services to live with the revenue projections

Contacting the Townships financial management

This financial report is designed to provide a general overview of the Townships finances to its citizens customers investors and creditors and to demonstrate the Townships accountability for the money it receives Questions regarding any information provided in this report or request for additional financial information should be addressed to bull -~

Grand Rapids Charter Township Phone (616) 361-7391 Michael DeVries Supervisor 1836 East 8eltline NE Grand Rapids MI 49525-4594

I

I

I r

I I l

-vishy

246 E Kilgore Road Siegfried Crandall PC Kalamazoo MI 49002-5599 wwwsiegfriedcrandallcom

Certified Public Accountants amp Advisors Telephone 269-381-4970

800-876-0979 Fax 269-349-1344

INDEPENDENT AUDITORS REPORT

Board of Trustees Grand Rapids Charter Township Michigan

We have audited the accompanying financial statements of the governmental activities each major fund and the aggregate remaining fund information of Grand Rapids Charter Township Michigan as of December 31 2008 and for the year then ended which collectively comprise the Townships basic financial statements as listed in the contents These financial statements are the responsibility of the Grand Rapids Charter Township Michigans management Our responsibility is to express opinions on these financial statements based on our audit

We conducted our audit in accordance with US generally accepted auditing standards Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement An audit includes examining on a test basis evidence supporting the amounts and disclosures in the financial statements An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation We believe that our audit provides a reasonable basis for our opinions

In our opinion the financial statements referred to above present fairly in all material respects the respective financial position of the governmental activities each major fund and the aggregate remaining fund information of Grand Rapids Charter Township Michigan as of December 312008 and the respective changes in financial position and where applicable cash flows thereof for the year then ended in conformity with US generally accepted accounting principles

The managements discussion and analysis and the budgetary comparison information as listed in the contents are not required parts of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board We have applied certain limited procedures which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information However we did not audit the information and express no opinion on it

Grand Rapids Charter Township MANAGEMENTS DISCUSSION AND ANALYSIS (Continued)

Capital assets

At December 31 2008 the Township had invested $7483378 in various capital assets including its land buildings equipment and vehicles This amount represents a net decrease of $118168 in 2008

This years major capital asset additions included

bull Costs incurred to develop a bike trail in the amount of $507549 bull Costs associated with shared road costs in the amount of $263373

Economic condition and outlook

The current economic condition has dramatically deteriorated during the last year on both the national and state level There are very few indications of an economic turnaround nationally and most experts expect Michigan to lag behind any national recovery The negative affect of the continuing recession on Grand Rapids Charter Township relates to our revenue sources for 2010 and 2011 and are as follows

a) The probable deflation of real property values in 2009 with lower property tax collection for 2010 and 2011 will be most likely be in the 1 to 2 range annually

-traquo High unemployment will likely result in less consumer spending and decrease state tax receipts that will impact the revenue we r~ceive from State Constitutional Revenue Sharing by as much as 10

c) The further slowdown in construction will likely result in less inspection fee revenue of approximately 25 this year and remain flat for 2010 with slow growth returning in 2011

d) The interest we earn on our investments wilr likely average in the 25 annual range which is oneshythird less than 2008 with no anticipated rebound in interest rates until late 2010

The impact for the 2009 Grand Rapids Charter Township budget is an expected revenue drop of 38 from the 2008 level The Township will likely see an additional decline of 6 in 2010 before stabilizing for the 2011 budget year Grand Rapids Charter Township expects to weather the economic storm without increasing the burden on our residents of additional taxes or fees We will take the necessary steps to ~ontrol costs and provide essential services to live with the revenue projections

Contacting the Townships financial management

This financial report is designed to provide a general overview of the Townships finances to its citizens customers investors and creditors and to demonstrate the Townships accountability for the money it receives Questions regarding any information provided in this report or request for additional financial information should be addressed to bull -~

Grand Rapids Charter Township Phone (616) 361-7391 Michael DeVries Supervisor 1836 East 8eltline NE Grand Rapids MI 49525-4594

I

I

I r

I I l

-vishy

246 E Kilgore Road Siegfried Crandall PC Kalamazoo MI 49002-5599 wwwsiegfriedcrandallcom

Certified Public Accountants amp Advisors Telephone 269-381-4970

800-876-0979 Fax 269-349-1344

INDEPENDENT AUDITORS REPORT

Board of Trustees Grand Rapids Charter Township Michigan

We have audited the accompanying financial statements of the governmental activities each major fund and the aggregate remaining fund information of Grand Rapids Charter Township Michigan as of December 31 2008 and for the year then ended which collectively comprise the Townships basic financial statements as listed in the contents These financial statements are the responsibility of the Grand Rapids Charter Township Michigans management Our responsibility is to express opinions on these financial statements based on our audit

We conducted our audit in accordance with US generally accepted auditing standards Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement An audit includes examining on a test basis evidence supporting the amounts and disclosures in the financial statements An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation We believe that our audit provides a reasonable basis for our opinions

In our opinion the financial statements referred to above present fairly in all material respects the respective financial position of the governmental activities each major fund and the aggregate remaining fund information of Grand Rapids Charter Township Michigan as of December 312008 and the respective changes in financial position and where applicable cash flows thereof for the year then ended in conformity with US generally accepted accounting principles

The managements discussion and analysis and the budgetary comparison information as listed in the contents are not required parts of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board We have applied certain limited procedures which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information However we did not audit the information and express no opinion on it

246 E Kilgore Road Siegfried Crandall PC Kalamazoo MI 49002-5599 wwwsiegfriedcrandallcom

Certified Public Accountants amp Advisors Telephone 269-381-4970

800-876-0979 Fax 269-349-1344

INDEPENDENT AUDITORS REPORT

Board of Trustees Grand Rapids Charter Township Michigan

We have audited the accompanying financial statements of the governmental activities each major fund and the aggregate remaining fund information of Grand Rapids Charter Township Michigan as of December 31 2008 and for the year then ended which collectively comprise the Townships basic financial statements as listed in the contents These financial statements are the responsibility of the Grand Rapids Charter Township Michigans management Our responsibility is to express opinions on these financial statements based on our audit

We conducted our audit in accordance with US generally accepted auditing standards Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement An audit includes examining on a test basis evidence supporting the amounts and disclosures in the financial statements An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation We believe that our audit provides a reasonable basis for our opinions

In our opinion the financial statements referred to above present fairly in all material respects the respective financial position of the governmental activities each major fund and the aggregate remaining fund information of Grand Rapids Charter Township Michigan as of December 312008 and the respective changes in financial position and where applicable cash flows thereof for the year then ended in conformity with US generally accepted accounting principles

The managements discussion and analysis and the budgetary comparison information as listed in the contents are not required parts of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board We have applied certain limited procedures which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information However we did not audit the information and express no opinion on it

Board of Trustees Grand Rapids Charter Township Michigan Page 2

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Grand Rapids Charter Township Michigans basic financial statements The supplementary information as listed in the contents is presented for purposes of additional analysis and is not a required part of the basic financial statements Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole

March 12 2009

BASIC FINANCIAL STATEMENTS

Grand Rapids Charier Township STATEMENT OF NET ASSETS December 31 2008

ASSETS Current assets

Cash Investments Receivables Prepaid expenses

Total current assets

Noncurrent assets Receivables Capital assets not being depreciated - land Capital assets net of accumulated depreciation

Total noncurrent assets

Total assets

LIABILITIES Current liabilities

Payables Deferred revenue

Total current liabilities

NET ASSETS Invested in capital assets Restricted for

Public safety Public works

Unrestricted

Total net assets

Governmental activities

$ 2228187 2397940 1056006

55110

5737243

89764 4299000 3184378

7573142

13310385

128744 1518955

1647699

7483378

84458 174375

3920475

$ 11662686

See notes to financial statements

-5shy

Grand Rapids Charter Township STATEMENT OF ACTIVITIES Year ended December 31 2008

FunctionsPrograms Governmental activities

Legislative General government Public safety Public works Health and welfare Community and economic

development Recreation and culture

Expenses

$ 20632 944981

1454713 223195

97679

97627 74893

Program revenues

Operating Charges for grants and

services contributions

$ $ 85383

232932 106979

20663 8098

115970

Capital grants and

contributions

$

79916

Net (expenses)

revenues and changes in net assets

$ (20632) (859598)

(1221781 ) (246)

(97679)

(76964) 13121

bull Total governmental activities $2913720 $ 454055 $ 115970 $ 79916 (2263779)

General revenues Property taxes State shared revenue Franchise fees Unrestricted interest income Other

1386749 1000880

168242 150033

15857

r~

Total general revenues --~

2721761

Special item - gain on sale of land 216088

Change in net assets 674070

- Net assets - beginning 10988616

Net assets - ~nding $ 11662686

See notes to financial statements

-6shy

Grand Rapids Charter Township BALANCE SHEETmiddot governmental funds December 31 2008

Malorfunds

Leonardi Crahen Nonmajor Total

Improvement Public Foresthill governmental governmental General Revolvlnfl Safety Pathwars funds funds

ASSETS Cash Investments Receivables

Total assets

LIABILITIES AND FUND BALANCES

Liabilities Payables Deferred revenue

Total liabilities

Fund balances Unreserved undesignated Unreserved reported in

non major special revenue funds

Total fund balances

Total liabilities and fund balances

$ 570865 476622 591007

$1638494

$ 103312 665641

768953

869541

869541

$1638494

$ 959557 1921318

96764

$ 2977639

$ 96764

96764

2880875

2880875

$ 2977639

$ 362099

391845

$ 753944

$ 753944

753944

$ 753944

$ 18197

$ 18197

$ 1540

1540

16657

16657

$ 18197

$

$

$

$

237123

45591

282714

7441 99370

106811

175903

175903

282714

$

$

$

$

2147841 2397940 1125207

5670988

112293 1615719

1728012

3767073

175903

3942976

5670988

Amounts reported for governmental activities in the statement of net assets (page 5) are different because

Total fund balances - governmental funds

Prepaid expenses are not reported in the funds

Special assessments receivable are not available to pay for the current periods expenditures and therefore are deferred in the funds

Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds

Net assets of the Building Inspections Fund are included in governmental activities

Net assets of governmental activities

$

$

3942976

55110

96764

7483378

84458

11662686

See notes to financial statements

-7shy

Grand Rapids Charter Township STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - governmental funds Year ended December 312008

Malorfunds

LeonardI Crahen

Improvement Public Foresthill General Revolvinf Safety Pathways

REVENUES Property taxes $ 680679 $ $ 731519 $ Licenses and permits 197453 State grants 1009283 Intergovernmental Charges for services 96577 Interest and rentals 84547 76275 2640 Other 8432 13270 79916

Total revenues 2076971 89545 731519 82556

EXPENDITURES Legislative 20632 General government 893793

Public safety 1113296 Public works 353472 Health and welfare 105869 r Community and economic development 91337 I Recreation and culture 11879 Capital outlay 54014 507549

Total expenditures 2644292 507549

- EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (567321) 89545 731519 (424993)

OTHER FINANCING SOURCES (USES) Transfers in 731519 420000 Transfers out (490000) (731519)

Total other sources (uses) 241519 (731519) 420000

SPECIAL ITEM Proceeds from sale of land 891088

NET CHANGES IN FUND BALANCES (325802) 980633 (4993)

FUND BALANCESmiddot BEGINNING 1195343 1900242 21650

FUND BALANCES - ENDING $ 869541 $ 2880875 $ $ 16657

Nonmajor governmental

funds

$

100000

2164 103253

205417

121389

121389

84028

70000

70000

154028

21875

$ 175903

Total governmental

funds

$ 1 412198 197453

1009283 100000 96577

165626 204871

3186008

20632 893793

1113296 474861 105869 91337 11879

561563

3273230

(87222)

1221519 (1221519)

891088

803866

3139110

$ 3942976

See notes to financial statements

-8shy

Grand Rapids Charter Township STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - governmental funds (Continued) Year ended December 312008

Reconciliation of the statement of revenues expenditures and changes in fund balances to the statement of activities

Net change in fund balances - total governmental funds (page 8)

Amounts reported for governmental activities in the statement of activities are different because

Capital assets Assets acquired Assets disposed Provision for depreciation

Change in other asselslliabilities Prepaid expenses Special assessments receivable

Net expenses of the Building Inspections Fund

Change in net assets of governmental activities (page 6)

-

$ 803866

812053 (675000) (255221)

(650) (10270)

(708)

$ 674070

I I

I

See notes to the financial statements

-9shy

Grand Rapids Charter Township STATEMENT OF NET ASSETS - proprietary fund December 31 2008

Building Inspections

ASSETS Cash $ 80346 Receivables 20563

Total assets 100909

LIABILITIES Payables 16451

NET ASSETS 84458

Amounts reported for business-type activities in the government-wide statement of net assets (page 5) are different because

Assets and liabilities of the Building Inspections Fund have been combined with those of governmental activities (84458)

Net assets of business-type activities $

See notes to financial statements

-10shy

Grand Rapids Charier Township STATEMENT OF REVENUES EXPENSES AND CHANGES IN FUND NET ASSETS - proprietary fund Year ended December 31 2008

OPERATING REVENUES Charges for services - licenses and permits

OPERATING EXPENSES Salaries and fringe benefits Contracted services

Total operating expenses

CHANGE IN NET ASSETS

NET ASSETS - BEGINNING

NET ASSETS - ENDING

CHANGE IN NET ASSETS

Amounts reported for business-type activities in the government-wide statement01activities (page 6) are different becausemiddot

_a

Revenues and expenses of the Building Inspections Fund have been cGrnbined with tJose of the governmental activities

-Change in net assets of business-type activities

Building Inspections

$ 195964

39901 156771

196672

(708)

85166

$ 84458 I $ (708) r

708

$

See notes to financial statements

-11shy

BASIC FINANCIAL STATEMENTS

Grand Rapids Charier Township STATEMENT OF NET ASSETS December 31 2008

ASSETS Current assets

Cash Investments Receivables Prepaid expenses

Total current assets

Noncurrent assets Receivables Capital assets not being depreciated - land Capital assets net of accumulated depreciation

Total noncurrent assets

Total assets

LIABILITIES Current liabilities

Payables Deferred revenue

Total current liabilities

NET ASSETS Invested in capital assets Restricted for

Public safety Public works

Unrestricted

Total net assets

Governmental activities

$ 2228187 2397940 1056006

55110

5737243

89764 4299000 3184378

7573142

13310385

128744 1518955

1647699

7483378

84458 174375

3920475

$ 11662686

See notes to financial statements

-5shy

Grand Rapids Charter Township STATEMENT OF ACTIVITIES Year ended December 31 2008

FunctionsPrograms Governmental activities

Legislative General government Public safety Public works Health and welfare Community and economic

development Recreation and culture

Expenses

$ 20632 944981

1454713 223195

97679

97627 74893

Program revenues

Operating Charges for grants and

services contributions

$ $ 85383

232932 106979

20663 8098

115970

Capital grants and

contributions

$

79916

Net (expenses)

revenues and changes in net assets

$ (20632) (859598)

(1221781 ) (246)

(97679)

(76964) 13121

bull Total governmental activities $2913720 $ 454055 $ 115970 $ 79916 (2263779)

General revenues Property taxes State shared revenue Franchise fees Unrestricted interest income Other

1386749 1000880

168242 150033

15857

r~

Total general revenues --~

2721761

Special item - gain on sale of land 216088

Change in net assets 674070

- Net assets - beginning 10988616

Net assets - ~nding $ 11662686

See notes to financial statements

-6shy

Grand Rapids Charter Township BALANCE SHEETmiddot governmental funds December 31 2008

Malorfunds

Leonardi Crahen Nonmajor Total

Improvement Public Foresthill governmental governmental General Revolvlnfl Safety Pathwars funds funds

ASSETS Cash Investments Receivables

Total assets

LIABILITIES AND FUND BALANCES

Liabilities Payables Deferred revenue

Total liabilities

Fund balances Unreserved undesignated Unreserved reported in

non major special revenue funds

Total fund balances

Total liabilities and fund balances

$ 570865 476622 591007

$1638494

$ 103312 665641

768953

869541

869541

$1638494

$ 959557 1921318

96764

$ 2977639

$ 96764

96764

2880875

2880875

$ 2977639

$ 362099

391845

$ 753944

$ 753944

753944

$ 753944

$ 18197

$ 18197

$ 1540

1540

16657

16657

$ 18197

$

$

$

$

237123

45591

282714

7441 99370

106811

175903

175903

282714

$

$

$

$

2147841 2397940 1125207

5670988

112293 1615719

1728012

3767073

175903

3942976

5670988

Amounts reported for governmental activities in the statement of net assets (page 5) are different because

Total fund balances - governmental funds

Prepaid expenses are not reported in the funds

Special assessments receivable are not available to pay for the current periods expenditures and therefore are deferred in the funds

Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds

Net assets of the Building Inspections Fund are included in governmental activities

Net assets of governmental activities

$

$

3942976

55110

96764

7483378

84458

11662686

See notes to financial statements

-7shy

Grand Rapids Charter Township STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - governmental funds Year ended December 312008

Malorfunds

LeonardI Crahen

Improvement Public Foresthill General Revolvinf Safety Pathways

REVENUES Property taxes $ 680679 $ $ 731519 $ Licenses and permits 197453 State grants 1009283 Intergovernmental Charges for services 96577 Interest and rentals 84547 76275 2640 Other 8432 13270 79916

Total revenues 2076971 89545 731519 82556

EXPENDITURES Legislative 20632 General government 893793

Public safety 1113296 Public works 353472 Health and welfare 105869 r Community and economic development 91337 I Recreation and culture 11879 Capital outlay 54014 507549

Total expenditures 2644292 507549

- EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (567321) 89545 731519 (424993)

OTHER FINANCING SOURCES (USES) Transfers in 731519 420000 Transfers out (490000) (731519)

Total other sources (uses) 241519 (731519) 420000

SPECIAL ITEM Proceeds from sale of land 891088

NET CHANGES IN FUND BALANCES (325802) 980633 (4993)

FUND BALANCESmiddot BEGINNING 1195343 1900242 21650

FUND BALANCES - ENDING $ 869541 $ 2880875 $ $ 16657

Nonmajor governmental

funds

$

100000

2164 103253

205417

121389

121389

84028

70000

70000

154028

21875

$ 175903

Total governmental

funds

$ 1 412198 197453

1009283 100000 96577

165626 204871

3186008

20632 893793

1113296 474861 105869 91337 11879

561563

3273230

(87222)

1221519 (1221519)

891088

803866

3139110

$ 3942976

See notes to financial statements

-8shy

Grand Rapids Charter Township STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - governmental funds (Continued) Year ended December 312008

Reconciliation of the statement of revenues expenditures and changes in fund balances to the statement of activities

Net change in fund balances - total governmental funds (page 8)

Amounts reported for governmental activities in the statement of activities are different because

Capital assets Assets acquired Assets disposed Provision for depreciation

Change in other asselslliabilities Prepaid expenses Special assessments receivable

Net expenses of the Building Inspections Fund

Change in net assets of governmental activities (page 6)

-

$ 803866

812053 (675000) (255221)

(650) (10270)

(708)

$ 674070

I I

I

See notes to the financial statements

-9shy

Grand Rapids Charter Township STATEMENT OF NET ASSETS - proprietary fund December 31 2008

Building Inspections

ASSETS Cash $ 80346 Receivables 20563

Total assets 100909

LIABILITIES Payables 16451

NET ASSETS 84458

Amounts reported for business-type activities in the government-wide statement of net assets (page 5) are different because

Assets and liabilities of the Building Inspections Fund have been combined with those of governmental activities (84458)

Net assets of business-type activities $

See notes to financial statements

-10shy

Grand Rapids Charier Township STATEMENT OF REVENUES EXPENSES AND CHANGES IN FUND NET ASSETS - proprietary fund Year ended December 31 2008

OPERATING REVENUES Charges for services - licenses and permits

OPERATING EXPENSES Salaries and fringe benefits Contracted services

Total operating expenses

CHANGE IN NET ASSETS

NET ASSETS - BEGINNING

NET ASSETS - ENDING

CHANGE IN NET ASSETS

Amounts reported for business-type activities in the government-wide statement01activities (page 6) are different becausemiddot

_a

Revenues and expenses of the Building Inspections Fund have been cGrnbined with tJose of the governmental activities

-Change in net assets of business-type activities

Building Inspections

$ 195964

39901 156771

196672

(708)

85166

$ 84458 I $ (708) r

708

$

See notes to financial statements

-11shy

Grand Rapids Charier Township STATEMENT OF NET ASSETS December 31 2008

ASSETS Current assets

Cash Investments Receivables Prepaid expenses

Total current assets

Noncurrent assets Receivables Capital assets not being depreciated - land Capital assets net of accumulated depreciation

Total noncurrent assets

Total assets

LIABILITIES Current liabilities

Payables Deferred revenue

Total current liabilities

NET ASSETS Invested in capital assets Restricted for

Public safety Public works

Unrestricted

Total net assets

Governmental activities

$ 2228187 2397940 1056006

55110

5737243

89764 4299000 3184378

7573142

13310385

128744 1518955

1647699

7483378

84458 174375

3920475

$ 11662686

See notes to financial statements

-5shy

Grand Rapids Charter Township STATEMENT OF ACTIVITIES Year ended December 31 2008

FunctionsPrograms Governmental activities

Legislative General government Public safety Public works Health and welfare Community and economic

development Recreation and culture

Expenses

$ 20632 944981

1454713 223195

97679

97627 74893

Program revenues

Operating Charges for grants and

services contributions

$ $ 85383

232932 106979

20663 8098

115970

Capital grants and

contributions

$

79916

Net (expenses)

revenues and changes in net assets

$ (20632) (859598)

(1221781 ) (246)

(97679)

(76964) 13121

bull Total governmental activities $2913720 $ 454055 $ 115970 $ 79916 (2263779)

General revenues Property taxes State shared revenue Franchise fees Unrestricted interest income Other

1386749 1000880

168242 150033

15857

r~

Total general revenues --~

2721761

Special item - gain on sale of land 216088

Change in net assets 674070

- Net assets - beginning 10988616

Net assets - ~nding $ 11662686

See notes to financial statements

-6shy

Grand Rapids Charter Township BALANCE SHEETmiddot governmental funds December 31 2008

Malorfunds

Leonardi Crahen Nonmajor Total

Improvement Public Foresthill governmental governmental General Revolvlnfl Safety Pathwars funds funds

ASSETS Cash Investments Receivables

Total assets

LIABILITIES AND FUND BALANCES

Liabilities Payables Deferred revenue

Total liabilities

Fund balances Unreserved undesignated Unreserved reported in

non major special revenue funds

Total fund balances

Total liabilities and fund balances

$ 570865 476622 591007

$1638494

$ 103312 665641

768953

869541

869541

$1638494

$ 959557 1921318

96764

$ 2977639

$ 96764

96764

2880875

2880875

$ 2977639

$ 362099

391845

$ 753944

$ 753944

753944

$ 753944

$ 18197

$ 18197

$ 1540

1540

16657

16657

$ 18197

$

$

$

$

237123

45591

282714

7441 99370

106811

175903

175903

282714

$

$

$

$

2147841 2397940 1125207

5670988

112293 1615719

1728012

3767073

175903

3942976

5670988

Amounts reported for governmental activities in the statement of net assets (page 5) are different because

Total fund balances - governmental funds

Prepaid expenses are not reported in the funds

Special assessments receivable are not available to pay for the current periods expenditures and therefore are deferred in the funds

Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds

Net assets of the Building Inspections Fund are included in governmental activities

Net assets of governmental activities

$

$

3942976

55110

96764

7483378

84458

11662686

See notes to financial statements

-7shy

Grand Rapids Charter Township STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - governmental funds Year ended December 312008

Malorfunds

LeonardI Crahen

Improvement Public Foresthill General Revolvinf Safety Pathways

REVENUES Property taxes $ 680679 $ $ 731519 $ Licenses and permits 197453 State grants 1009283 Intergovernmental Charges for services 96577 Interest and rentals 84547 76275 2640 Other 8432 13270 79916

Total revenues 2076971 89545 731519 82556

EXPENDITURES Legislative 20632 General government 893793

Public safety 1113296 Public works 353472 Health and welfare 105869 r Community and economic development 91337 I Recreation and culture 11879 Capital outlay 54014 507549

Total expenditures 2644292 507549

- EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (567321) 89545 731519 (424993)

OTHER FINANCING SOURCES (USES) Transfers in 731519 420000 Transfers out (490000) (731519)

Total other sources (uses) 241519 (731519) 420000

SPECIAL ITEM Proceeds from sale of land 891088

NET CHANGES IN FUND BALANCES (325802) 980633 (4993)

FUND BALANCESmiddot BEGINNING 1195343 1900242 21650

FUND BALANCES - ENDING $ 869541 $ 2880875 $ $ 16657

Nonmajor governmental

funds

$

100000

2164 103253

205417

121389

121389

84028

70000

70000

154028

21875

$ 175903

Total governmental

funds

$ 1 412198 197453

1009283 100000 96577

165626 204871

3186008

20632 893793

1113296 474861 105869 91337 11879

561563

3273230

(87222)

1221519 (1221519)

891088

803866

3139110

$ 3942976

See notes to financial statements

-8shy

Grand Rapids Charter Township STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - governmental funds (Continued) Year ended December 312008

Reconciliation of the statement of revenues expenditures and changes in fund balances to the statement of activities

Net change in fund balances - total governmental funds (page 8)

Amounts reported for governmental activities in the statement of activities are different because

Capital assets Assets acquired Assets disposed Provision for depreciation

Change in other asselslliabilities Prepaid expenses Special assessments receivable

Net expenses of the Building Inspections Fund

Change in net assets of governmental activities (page 6)

-

$ 803866

812053 (675000) (255221)

(650) (10270)

(708)

$ 674070

I I

I

See notes to the financial statements

-9shy

Grand Rapids Charter Township STATEMENT OF NET ASSETS - proprietary fund December 31 2008

Building Inspections

ASSETS Cash $ 80346 Receivables 20563

Total assets 100909

LIABILITIES Payables 16451

NET ASSETS 84458

Amounts reported for business-type activities in the government-wide statement of net assets (page 5) are different because

Assets and liabilities of the Building Inspections Fund have been combined with those of governmental activities (84458)

Net assets of business-type activities $

See notes to financial statements

-10shy

Grand Rapids Charier Township STATEMENT OF REVENUES EXPENSES AND CHANGES IN FUND NET ASSETS - proprietary fund Year ended December 31 2008

OPERATING REVENUES Charges for services - licenses and permits

OPERATING EXPENSES Salaries and fringe benefits Contracted services

Total operating expenses

CHANGE IN NET ASSETS

NET ASSETS - BEGINNING

NET ASSETS - ENDING

CHANGE IN NET ASSETS

Amounts reported for business-type activities in the government-wide statement01activities (page 6) are different becausemiddot

_a

Revenues and expenses of the Building Inspections Fund have been cGrnbined with tJose of the governmental activities

-Change in net assets of business-type activities

Building Inspections

$ 195964

39901 156771

196672

(708)

85166

$ 84458 I $ (708) r

708

$

See notes to financial statements

-11shy

Grand Rapids Charter Township STATEMENT OF ACTIVITIES Year ended December 31 2008

FunctionsPrograms Governmental activities

Legislative General government Public safety Public works Health and welfare Community and economic

development Recreation and culture

Expenses

$ 20632 944981

1454713 223195

97679

97627 74893

Program revenues

Operating Charges for grants and

services contributions

$ $ 85383

232932 106979

20663 8098

115970

Capital grants and

contributions

$

79916

Net (expenses)

revenues and changes in net assets

$ (20632) (859598)

(1221781 ) (246)

(97679)

(76964) 13121

bull Total governmental activities $2913720 $ 454055 $ 115970 $ 79916 (2263779)

General revenues Property taxes State shared revenue Franchise fees Unrestricted interest income Other

1386749 1000880

168242 150033

15857

r~

Total general revenues --~

2721761

Special item - gain on sale of land 216088

Change in net assets 674070

- Net assets - beginning 10988616

Net assets - ~nding $ 11662686

See notes to financial statements

-6shy

Grand Rapids Charter Township BALANCE SHEETmiddot governmental funds December 31 2008

Malorfunds

Leonardi Crahen Nonmajor Total

Improvement Public Foresthill governmental governmental General Revolvlnfl Safety Pathwars funds funds

ASSETS Cash Investments Receivables

Total assets

LIABILITIES AND FUND BALANCES

Liabilities Payables Deferred revenue

Total liabilities

Fund balances Unreserved undesignated Unreserved reported in

non major special revenue funds

Total fund balances

Total liabilities and fund balances

$ 570865 476622 591007

$1638494

$ 103312 665641

768953

869541

869541

$1638494

$ 959557 1921318

96764

$ 2977639

$ 96764

96764

2880875

2880875

$ 2977639

$ 362099

391845

$ 753944

$ 753944

753944

$ 753944

$ 18197

$ 18197

$ 1540

1540

16657

16657

$ 18197

$

$

$

$

237123

45591

282714

7441 99370

106811

175903

175903

282714

$

$

$

$

2147841 2397940 1125207

5670988

112293 1615719

1728012

3767073

175903

3942976

5670988

Amounts reported for governmental activities in the statement of net assets (page 5) are different because

Total fund balances - governmental funds

Prepaid expenses are not reported in the funds

Special assessments receivable are not available to pay for the current periods expenditures and therefore are deferred in the funds

Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds

Net assets of the Building Inspections Fund are included in governmental activities

Net assets of governmental activities

$

$

3942976

55110

96764

7483378

84458

11662686

See notes to financial statements

-7shy

Grand Rapids Charter Township STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - governmental funds Year ended December 312008

Malorfunds

LeonardI Crahen

Improvement Public Foresthill General Revolvinf Safety Pathways

REVENUES Property taxes $ 680679 $ $ 731519 $ Licenses and permits 197453 State grants 1009283 Intergovernmental Charges for services 96577 Interest and rentals 84547 76275 2640 Other 8432 13270 79916

Total revenues 2076971 89545 731519 82556

EXPENDITURES Legislative 20632 General government 893793

Public safety 1113296 Public works 353472 Health and welfare 105869 r Community and economic development 91337 I Recreation and culture 11879 Capital outlay 54014 507549

Total expenditures 2644292 507549

- EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (567321) 89545 731519 (424993)

OTHER FINANCING SOURCES (USES) Transfers in 731519 420000 Transfers out (490000) (731519)

Total other sources (uses) 241519 (731519) 420000

SPECIAL ITEM Proceeds from sale of land 891088

NET CHANGES IN FUND BALANCES (325802) 980633 (4993)

FUND BALANCESmiddot BEGINNING 1195343 1900242 21650

FUND BALANCES - ENDING $ 869541 $ 2880875 $ $ 16657

Nonmajor governmental

funds

$

100000

2164 103253

205417

121389

121389

84028

70000

70000

154028

21875

$ 175903

Total governmental

funds

$ 1 412198 197453

1009283 100000 96577

165626 204871

3186008

20632 893793

1113296 474861 105869 91337 11879

561563

3273230

(87222)

1221519 (1221519)

891088

803866

3139110

$ 3942976

See notes to financial statements

-8shy

Grand Rapids Charter Township STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - governmental funds (Continued) Year ended December 312008

Reconciliation of the statement of revenues expenditures and changes in fund balances to the statement of activities

Net change in fund balances - total governmental funds (page 8)

Amounts reported for governmental activities in the statement of activities are different because

Capital assets Assets acquired Assets disposed Provision for depreciation

Change in other asselslliabilities Prepaid expenses Special assessments receivable

Net expenses of the Building Inspections Fund

Change in net assets of governmental activities (page 6)

-

$ 803866

812053 (675000) (255221)

(650) (10270)

(708)

$ 674070

I I

I

See notes to the financial statements

-9shy

Grand Rapids Charter Township STATEMENT OF NET ASSETS - proprietary fund December 31 2008

Building Inspections

ASSETS Cash $ 80346 Receivables 20563

Total assets 100909

LIABILITIES Payables 16451

NET ASSETS 84458

Amounts reported for business-type activities in the government-wide statement of net assets (page 5) are different because

Assets and liabilities of the Building Inspections Fund have been combined with those of governmental activities (84458)

Net assets of business-type activities $

See notes to financial statements

-10shy

Grand Rapids Charier Township STATEMENT OF REVENUES EXPENSES AND CHANGES IN FUND NET ASSETS - proprietary fund Year ended December 31 2008

OPERATING REVENUES Charges for services - licenses and permits

OPERATING EXPENSES Salaries and fringe benefits Contracted services

Total operating expenses

CHANGE IN NET ASSETS

NET ASSETS - BEGINNING

NET ASSETS - ENDING

CHANGE IN NET ASSETS

Amounts reported for business-type activities in the government-wide statement01activities (page 6) are different becausemiddot

_a

Revenues and expenses of the Building Inspections Fund have been cGrnbined with tJose of the governmental activities

-Change in net assets of business-type activities

Building Inspections

$ 195964

39901 156771

196672

(708)

85166

$ 84458 I $ (708) r

708

$

See notes to financial statements

-11shy

Grand Rapids Charter Township BALANCE SHEETmiddot governmental funds December 31 2008

Malorfunds

Leonardi Crahen Nonmajor Total

Improvement Public Foresthill governmental governmental General Revolvlnfl Safety Pathwars funds funds

ASSETS Cash Investments Receivables

Total assets

LIABILITIES AND FUND BALANCES

Liabilities Payables Deferred revenue

Total liabilities

Fund balances Unreserved undesignated Unreserved reported in

non major special revenue funds

Total fund balances

Total liabilities and fund balances

$ 570865 476622 591007

$1638494

$ 103312 665641

768953

869541

869541

$1638494

$ 959557 1921318

96764

$ 2977639

$ 96764

96764

2880875

2880875

$ 2977639

$ 362099

391845

$ 753944

$ 753944

753944

$ 753944

$ 18197

$ 18197

$ 1540

1540

16657

16657

$ 18197

$

$

$

$

237123

45591

282714

7441 99370

106811

175903

175903

282714

$

$

$

$

2147841 2397940 1125207

5670988

112293 1615719

1728012

3767073

175903

3942976

5670988

Amounts reported for governmental activities in the statement of net assets (page 5) are different because

Total fund balances - governmental funds

Prepaid expenses are not reported in the funds

Special assessments receivable are not available to pay for the current periods expenditures and therefore are deferred in the funds

Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds

Net assets of the Building Inspections Fund are included in governmental activities

Net assets of governmental activities

$

$

3942976

55110

96764

7483378

84458

11662686

See notes to financial statements

-7shy

Grand Rapids Charter Township STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - governmental funds Year ended December 312008

Malorfunds

LeonardI Crahen

Improvement Public Foresthill General Revolvinf Safety Pathways

REVENUES Property taxes $ 680679 $ $ 731519 $ Licenses and permits 197453 State grants 1009283 Intergovernmental Charges for services 96577 Interest and rentals 84547 76275 2640 Other 8432 13270 79916

Total revenues 2076971 89545 731519 82556

EXPENDITURES Legislative 20632 General government 893793

Public safety 1113296 Public works 353472 Health and welfare 105869 r Community and economic development 91337 I Recreation and culture 11879 Capital outlay 54014 507549

Total expenditures 2644292 507549

- EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (567321) 89545 731519 (424993)

OTHER FINANCING SOURCES (USES) Transfers in 731519 420000 Transfers out (490000) (731519)

Total other sources (uses) 241519 (731519) 420000

SPECIAL ITEM Proceeds from sale of land 891088

NET CHANGES IN FUND BALANCES (325802) 980633 (4993)

FUND BALANCESmiddot BEGINNING 1195343 1900242 21650

FUND BALANCES - ENDING $ 869541 $ 2880875 $ $ 16657

Nonmajor governmental

funds

$

100000

2164 103253

205417

121389

121389

84028

70000

70000

154028

21875

$ 175903

Total governmental

funds

$ 1 412198 197453

1009283 100000 96577

165626 204871

3186008

20632 893793

1113296 474861 105869 91337 11879

561563

3273230

(87222)

1221519 (1221519)

891088

803866

3139110

$ 3942976

See notes to financial statements

-8shy

Grand Rapids Charter Township STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - governmental funds (Continued) Year ended December 312008

Reconciliation of the statement of revenues expenditures and changes in fund balances to the statement of activities

Net change in fund balances - total governmental funds (page 8)

Amounts reported for governmental activities in the statement of activities are different because

Capital assets Assets acquired Assets disposed Provision for depreciation

Change in other asselslliabilities Prepaid expenses Special assessments receivable

Net expenses of the Building Inspections Fund

Change in net assets of governmental activities (page 6)

-

$ 803866

812053 (675000) (255221)

(650) (10270)

(708)

$ 674070

I I

I

See notes to the financial statements

-9shy

Grand Rapids Charter Township STATEMENT OF NET ASSETS - proprietary fund December 31 2008

Building Inspections

ASSETS Cash $ 80346 Receivables 20563

Total assets 100909

LIABILITIES Payables 16451

NET ASSETS 84458

Amounts reported for business-type activities in the government-wide statement of net assets (page 5) are different because

Assets and liabilities of the Building Inspections Fund have been combined with those of governmental activities (84458)

Net assets of business-type activities $

See notes to financial statements

-10shy

Grand Rapids Charier Township STATEMENT OF REVENUES EXPENSES AND CHANGES IN FUND NET ASSETS - proprietary fund Year ended December 31 2008

OPERATING REVENUES Charges for services - licenses and permits

OPERATING EXPENSES Salaries and fringe benefits Contracted services

Total operating expenses

CHANGE IN NET ASSETS

NET ASSETS - BEGINNING

NET ASSETS - ENDING

CHANGE IN NET ASSETS

Amounts reported for business-type activities in the government-wide statement01activities (page 6) are different becausemiddot

_a

Revenues and expenses of the Building Inspections Fund have been cGrnbined with tJose of the governmental activities

-Change in net assets of business-type activities

Building Inspections

$ 195964

39901 156771

196672

(708)

85166

$ 84458 I $ (708) r

708

$

See notes to financial statements

-11shy

Grand Rapids Charter Township STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - governmental funds Year ended December 312008

Malorfunds

LeonardI Crahen

Improvement Public Foresthill General Revolvinf Safety Pathways

REVENUES Property taxes $ 680679 $ $ 731519 $ Licenses and permits 197453 State grants 1009283 Intergovernmental Charges for services 96577 Interest and rentals 84547 76275 2640 Other 8432 13270 79916

Total revenues 2076971 89545 731519 82556

EXPENDITURES Legislative 20632 General government 893793

Public safety 1113296 Public works 353472 Health and welfare 105869 r Community and economic development 91337 I Recreation and culture 11879 Capital outlay 54014 507549

Total expenditures 2644292 507549

- EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (567321) 89545 731519 (424993)

OTHER FINANCING SOURCES (USES) Transfers in 731519 420000 Transfers out (490000) (731519)

Total other sources (uses) 241519 (731519) 420000

SPECIAL ITEM Proceeds from sale of land 891088

NET CHANGES IN FUND BALANCES (325802) 980633 (4993)

FUND BALANCESmiddot BEGINNING 1195343 1900242 21650

FUND BALANCES - ENDING $ 869541 $ 2880875 $ $ 16657

Nonmajor governmental

funds

$

100000

2164 103253

205417

121389

121389

84028

70000

70000

154028

21875

$ 175903

Total governmental

funds

$ 1 412198 197453

1009283 100000 96577

165626 204871

3186008

20632 893793

1113296 474861 105869 91337 11879

561563

3273230

(87222)

1221519 (1221519)

891088

803866

3139110

$ 3942976

See notes to financial statements

-8shy

Grand Rapids Charter Township STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - governmental funds (Continued) Year ended December 312008

Reconciliation of the statement of revenues expenditures and changes in fund balances to the statement of activities

Net change in fund balances - total governmental funds (page 8)

Amounts reported for governmental activities in the statement of activities are different because

Capital assets Assets acquired Assets disposed Provision for depreciation

Change in other asselslliabilities Prepaid expenses Special assessments receivable

Net expenses of the Building Inspections Fund

Change in net assets of governmental activities (page 6)

-

$ 803866

812053 (675000) (255221)

(650) (10270)

(708)

$ 674070

I I

I

See notes to the financial statements

-9shy

Grand Rapids Charter Township STATEMENT OF NET ASSETS - proprietary fund December 31 2008

Building Inspections

ASSETS Cash $ 80346 Receivables 20563

Total assets 100909

LIABILITIES Payables 16451

NET ASSETS 84458

Amounts reported for business-type activities in the government-wide statement of net assets (page 5) are different because

Assets and liabilities of the Building Inspections Fund have been combined with those of governmental activities (84458)

Net assets of business-type activities $

See notes to financial statements

-10shy

Grand Rapids Charier Township STATEMENT OF REVENUES EXPENSES AND CHANGES IN FUND NET ASSETS - proprietary fund Year ended December 31 2008

OPERATING REVENUES Charges for services - licenses and permits

OPERATING EXPENSES Salaries and fringe benefits Contracted services

Total operating expenses

CHANGE IN NET ASSETS

NET ASSETS - BEGINNING

NET ASSETS - ENDING

CHANGE IN NET ASSETS

Amounts reported for business-type activities in the government-wide statement01activities (page 6) are different becausemiddot

_a

Revenues and expenses of the Building Inspections Fund have been cGrnbined with tJose of the governmental activities

-Change in net assets of business-type activities

Building Inspections

$ 195964

39901 156771

196672

(708)

85166

$ 84458 I $ (708) r

708

$

See notes to financial statements

-11shy

Nonmajor governmental

funds

$

100000

2164 103253

205417

121389

121389

84028

70000

70000

154028

21875

$ 175903

Total governmental

funds

$ 1 412198 197453

1009283 100000 96577

165626 204871

3186008

20632 893793

1113296 474861 105869 91337 11879

561563

3273230

(87222)

1221519 (1221519)

891088

803866

3139110

$ 3942976

See notes to financial statements

-8shy

Grand Rapids Charter Township STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - governmental funds (Continued) Year ended December 312008

Reconciliation of the statement of revenues expenditures and changes in fund balances to the statement of activities

Net change in fund balances - total governmental funds (page 8)

Amounts reported for governmental activities in the statement of activities are different because

Capital assets Assets acquired Assets disposed Provision for depreciation

Change in other asselslliabilities Prepaid expenses Special assessments receivable

Net expenses of the Building Inspections Fund

Change in net assets of governmental activities (page 6)

-

$ 803866

812053 (675000) (255221)

(650) (10270)

(708)

$ 674070

I I

I

See notes to the financial statements

-9shy

Grand Rapids Charter Township STATEMENT OF NET ASSETS - proprietary fund December 31 2008

Building Inspections

ASSETS Cash $ 80346 Receivables 20563

Total assets 100909

LIABILITIES Payables 16451

NET ASSETS 84458

Amounts reported for business-type activities in the government-wide statement of net assets (page 5) are different because

Assets and liabilities of the Building Inspections Fund have been combined with those of governmental activities (84458)

Net assets of business-type activities $

See notes to financial statements

-10shy

Grand Rapids Charier Township STATEMENT OF REVENUES EXPENSES AND CHANGES IN FUND NET ASSETS - proprietary fund Year ended December 31 2008

OPERATING REVENUES Charges for services - licenses and permits

OPERATING EXPENSES Salaries and fringe benefits Contracted services

Total operating expenses

CHANGE IN NET ASSETS

NET ASSETS - BEGINNING

NET ASSETS - ENDING

CHANGE IN NET ASSETS

Amounts reported for business-type activities in the government-wide statement01activities (page 6) are different becausemiddot

_a

Revenues and expenses of the Building Inspections Fund have been cGrnbined with tJose of the governmental activities

-Change in net assets of business-type activities

Building Inspections

$ 195964

39901 156771

196672

(708)

85166

$ 84458 I $ (708) r

708

$

See notes to financial statements

-11shy

Grand Rapids Charter Township STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - governmental funds (Continued) Year ended December 312008

Reconciliation of the statement of revenues expenditures and changes in fund balances to the statement of activities

Net change in fund balances - total governmental funds (page 8)

Amounts reported for governmental activities in the statement of activities are different because

Capital assets Assets acquired Assets disposed Provision for depreciation

Change in other asselslliabilities Prepaid expenses Special assessments receivable

Net expenses of the Building Inspections Fund

Change in net assets of governmental activities (page 6)

-

$ 803866

812053 (675000) (255221)

(650) (10270)

(708)

$ 674070

I I

I

See notes to the financial statements

-9shy

Grand Rapids Charter Township STATEMENT OF NET ASSETS - proprietary fund December 31 2008

Building Inspections

ASSETS Cash $ 80346 Receivables 20563

Total assets 100909

LIABILITIES Payables 16451

NET ASSETS 84458

Amounts reported for business-type activities in the government-wide statement of net assets (page 5) are different because

Assets and liabilities of the Building Inspections Fund have been combined with those of governmental activities (84458)

Net assets of business-type activities $

See notes to financial statements

-10shy

Grand Rapids Charier Township STATEMENT OF REVENUES EXPENSES AND CHANGES IN FUND NET ASSETS - proprietary fund Year ended December 31 2008

OPERATING REVENUES Charges for services - licenses and permits

OPERATING EXPENSES Salaries and fringe benefits Contracted services

Total operating expenses

CHANGE IN NET ASSETS

NET ASSETS - BEGINNING

NET ASSETS - ENDING

CHANGE IN NET ASSETS

Amounts reported for business-type activities in the government-wide statement01activities (page 6) are different becausemiddot

_a

Revenues and expenses of the Building Inspections Fund have been cGrnbined with tJose of the governmental activities

-Change in net assets of business-type activities

Building Inspections

$ 195964

39901 156771

196672

(708)

85166

$ 84458 I $ (708) r

708

$

See notes to financial statements

-11shy

Grand Rapids Charter Township STATEMENT OF NET ASSETS - proprietary fund December 31 2008

Building Inspections

ASSETS Cash $ 80346 Receivables 20563

Total assets 100909

LIABILITIES Payables 16451

NET ASSETS 84458

Amounts reported for business-type activities in the government-wide statement of net assets (page 5) are different because

Assets and liabilities of the Building Inspections Fund have been combined with those of governmental activities (84458)

Net assets of business-type activities $

See notes to financial statements

-10shy

Grand Rapids Charier Township STATEMENT OF REVENUES EXPENSES AND CHANGES IN FUND NET ASSETS - proprietary fund Year ended December 31 2008

OPERATING REVENUES Charges for services - licenses and permits

OPERATING EXPENSES Salaries and fringe benefits Contracted services

Total operating expenses

CHANGE IN NET ASSETS

NET ASSETS - BEGINNING

NET ASSETS - ENDING

CHANGE IN NET ASSETS

Amounts reported for business-type activities in the government-wide statement01activities (page 6) are different becausemiddot

_a

Revenues and expenses of the Building Inspections Fund have been cGrnbined with tJose of the governmental activities

-Change in net assets of business-type activities

Building Inspections

$ 195964

39901 156771

196672

(708)

85166

$ 84458 I $ (708) r

708

$

See notes to financial statements

-11shy

Grand Rapids Charier Township STATEMENT OF REVENUES EXPENSES AND CHANGES IN FUND NET ASSETS - proprietary fund Year ended December 31 2008

OPERATING REVENUES Charges for services - licenses and permits

OPERATING EXPENSES Salaries and fringe benefits Contracted services

Total operating expenses

CHANGE IN NET ASSETS

NET ASSETS - BEGINNING

NET ASSETS - ENDING

CHANGE IN NET ASSETS

Amounts reported for business-type activities in the government-wide statement01activities (page 6) are different becausemiddot

_a

Revenues and expenses of the Building Inspections Fund have been cGrnbined with tJose of the governmental activities

-Change in net assets of business-type activities

Building Inspections

$ 195964

39901 156771

196672

(708)

85166

$ 84458 I $ (708) r

708

$

See notes to financial statements

-11shy

Grand Rapids Charter Township STATEMENT OF CASH FLOWS - proprietary fund Year ended December 31 2008

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users Payments to employees Payments to suppliers

Net cash used in operating activities

CASH - BEGINNING

CASH - ENDING

Reconciliation of change in net assets to net cash used in operating activities

Change in net assets Adjustments to reconcile the change in net assets to net

cash used in operating activities Increase in receivables Increase in payables

Net cash used in operating activities

Building Inspections

$ 184801 18823

(206564)

(2940)

83286

$ 80346

$ (708)

(11163) 8931

$ (2940)

See notes to financial statements

-12shy

Grand Rapids Charter Township STATEMENT OF FIDUCIARY NET ASSETSmiddot Agency Funds December 312008

ASSETS Cash $ 914240

LIABILITIES Due to other governmental units $ 914240

See notes to financial statements

-13shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies of the Grand Rapids Charter Township Michigan (the Township) conform to US generally accepted accounting principles (hereinafter referred to as generally accepted accounting principles) as applicable to governments The following is a summary of the more significant policies

a) Reporting entity The accompanying financial statements present the Township and its component unit an entity for which the Township is considered to be financially accountable Component units are normally reported in separate columns in the government-wide financial statements to emphasize that they are legally separate from the Township

Discretely-presented component unit

Plainfield Avenue Corridor Improvement Authority The Authority was created in 2007 under the provisions of Act 280 Public Acts of 2005 of the State of Michigan The purpose of the Authority is to redevelop and promote economic growth within the Plainfield Avenue corridor The Authoritys revenues are primarily derived through tax increment financing The Authoritys governing body is appOinted by the Township Board and its budget must be approved by the Township Board The Authority had no transactions occur during the year therefore no information regarding the Authority has been included in the accompanying financial statements in 2007 Separate financial statements will not be issued for the Authority as management believes these financial statements including disclosures contain complete information so as to constitute a fair presentation of the Authority

b) Government-wide and fund financial statements The government-wide financial statements (Ie the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the Township The effect of interfund activity has been removed from these statements Governmental activities normally supported by property taxes and intergovernmental revenues are reported separately from business-type activities which rely to a significant extent on fees and charges for support

The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues Direct expenses are those that are clearly identifiable with a specific function Program revenues include (1) charges to customers or applicants who purchase use or directly benefit from goods services or privileges provided by a given function and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function Taxes and other items not properly included among program revenues are reported instead as general revenues

Separate financial statements are provided for governmental funds proprietary funds and fiduciary funds even though the latter are excluded from government-wide financial statements Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements

-14shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

c) Measurement focus basis of accounting and financial statement presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting as are the proprietary fund and fiduciary fund financial statements Revenues are recorded when earned and expenses are recorded when a liability is incurred regardless of the timing of related cash flows Property taxes are recognized as revenue in He year for which they are levied Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting Revenues are recognized as soon as they are both measurable and available Revenues are considered to be available if they are collected within the current period or soon enough thereafter to pay liabilities of the current period For this purpose the Township generally considers revenues to be available if they are expected to be collected within 60 days of the end of the current fiscal period Expenditures generally are recorded when a liability is incurred as under accrual accounting However debt service expenditures expenditures relating to compensated absences and claims and judgments are recorded only whenbull payment is due

Statetlrants licenses and permits charges for services and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period All other revenue items are considered to be me~surable only when cash is received by the Township

The Township reports the following major governmental funds

Themiddot General Fund is the Townships primary operating fund It accounts for all financial resources of the TownShip except those required to be accounted for in another fund Revenues are primarily derived from property taxes and state shared revenue

The Improvementmiddot Revolving Fund accounts for utility improvements financedmiddot through special assessments

The Public Safety Fund accounts for the financial resources used for the operational costs of the Townships public safety functions Revenues are derived from property taxes

The LeonardCrahenForesthill Pathways Fund accounts for the financial resources used for the construction and maintenance of nonmotorized trails within the Township Revenues are derived from transfers from the General Fund and private contributions

The Township reports a single proprietary fund the Building Inspections Fund which accounts for operations (1) that are financed and operated in a manner similar to private business enterprises shywhere the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges or (2) where the governing body has decided that periodic determination of revenues earned expenses incurred andor net income is appropriate for capital maintenance public policy management control accountability or other purposes

-15shy

Grand Rapids Charter Township STATEMENT OF FIDUCIARY NET ASSETSmiddot Agency Funds December 312008

ASSETS Cash $ 914240

LIABILITIES Due to other governmental units $ 914240

See notes to financial statements

-13shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies of the Grand Rapids Charter Township Michigan (the Township) conform to US generally accepted accounting principles (hereinafter referred to as generally accepted accounting principles) as applicable to governments The following is a summary of the more significant policies

a) Reporting entity The accompanying financial statements present the Township and its component unit an entity for which the Township is considered to be financially accountable Component units are normally reported in separate columns in the government-wide financial statements to emphasize that they are legally separate from the Township

Discretely-presented component unit

Plainfield Avenue Corridor Improvement Authority The Authority was created in 2007 under the provisions of Act 280 Public Acts of 2005 of the State of Michigan The purpose of the Authority is to redevelop and promote economic growth within the Plainfield Avenue corridor The Authoritys revenues are primarily derived through tax increment financing The Authoritys governing body is appOinted by the Township Board and its budget must be approved by the Township Board The Authority had no transactions occur during the year therefore no information regarding the Authority has been included in the accompanying financial statements in 2007 Separate financial statements will not be issued for the Authority as management believes these financial statements including disclosures contain complete information so as to constitute a fair presentation of the Authority

b) Government-wide and fund financial statements The government-wide financial statements (Ie the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the Township The effect of interfund activity has been removed from these statements Governmental activities normally supported by property taxes and intergovernmental revenues are reported separately from business-type activities which rely to a significant extent on fees and charges for support

The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues Direct expenses are those that are clearly identifiable with a specific function Program revenues include (1) charges to customers or applicants who purchase use or directly benefit from goods services or privileges provided by a given function and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function Taxes and other items not properly included among program revenues are reported instead as general revenues

Separate financial statements are provided for governmental funds proprietary funds and fiduciary funds even though the latter are excluded from government-wide financial statements Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements

-14shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

c) Measurement focus basis of accounting and financial statement presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting as are the proprietary fund and fiduciary fund financial statements Revenues are recorded when earned and expenses are recorded when a liability is incurred regardless of the timing of related cash flows Property taxes are recognized as revenue in He year for which they are levied Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting Revenues are recognized as soon as they are both measurable and available Revenues are considered to be available if they are collected within the current period or soon enough thereafter to pay liabilities of the current period For this purpose the Township generally considers revenues to be available if they are expected to be collected within 60 days of the end of the current fiscal period Expenditures generally are recorded when a liability is incurred as under accrual accounting However debt service expenditures expenditures relating to compensated absences and claims and judgments are recorded only whenbull payment is due

Statetlrants licenses and permits charges for services and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period All other revenue items are considered to be me~surable only when cash is received by the Township

The Township reports the following major governmental funds

Themiddot General Fund is the Townships primary operating fund It accounts for all financial resources of the TownShip except those required to be accounted for in another fund Revenues are primarily derived from property taxes and state shared revenue

The Improvementmiddot Revolving Fund accounts for utility improvements financedmiddot through special assessments

The Public Safety Fund accounts for the financial resources used for the operational costs of the Townships public safety functions Revenues are derived from property taxes

The LeonardCrahenForesthill Pathways Fund accounts for the financial resources used for the construction and maintenance of nonmotorized trails within the Township Revenues are derived from transfers from the General Fund and private contributions

The Township reports a single proprietary fund the Building Inspections Fund which accounts for operations (1) that are financed and operated in a manner similar to private business enterprises shywhere the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges or (2) where the governing body has decided that periodic determination of revenues earned expenses incurred andor net income is appropriate for capital maintenance public policy management control accountability or other purposes

-15shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies of the Grand Rapids Charter Township Michigan (the Township) conform to US generally accepted accounting principles (hereinafter referred to as generally accepted accounting principles) as applicable to governments The following is a summary of the more significant policies

a) Reporting entity The accompanying financial statements present the Township and its component unit an entity for which the Township is considered to be financially accountable Component units are normally reported in separate columns in the government-wide financial statements to emphasize that they are legally separate from the Township

Discretely-presented component unit

Plainfield Avenue Corridor Improvement Authority The Authority was created in 2007 under the provisions of Act 280 Public Acts of 2005 of the State of Michigan The purpose of the Authority is to redevelop and promote economic growth within the Plainfield Avenue corridor The Authoritys revenues are primarily derived through tax increment financing The Authoritys governing body is appOinted by the Township Board and its budget must be approved by the Township Board The Authority had no transactions occur during the year therefore no information regarding the Authority has been included in the accompanying financial statements in 2007 Separate financial statements will not be issued for the Authority as management believes these financial statements including disclosures contain complete information so as to constitute a fair presentation of the Authority

b) Government-wide and fund financial statements The government-wide financial statements (Ie the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the Township The effect of interfund activity has been removed from these statements Governmental activities normally supported by property taxes and intergovernmental revenues are reported separately from business-type activities which rely to a significant extent on fees and charges for support

The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues Direct expenses are those that are clearly identifiable with a specific function Program revenues include (1) charges to customers or applicants who purchase use or directly benefit from goods services or privileges provided by a given function and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function Taxes and other items not properly included among program revenues are reported instead as general revenues

Separate financial statements are provided for governmental funds proprietary funds and fiduciary funds even though the latter are excluded from government-wide financial statements Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements

-14shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

c) Measurement focus basis of accounting and financial statement presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting as are the proprietary fund and fiduciary fund financial statements Revenues are recorded when earned and expenses are recorded when a liability is incurred regardless of the timing of related cash flows Property taxes are recognized as revenue in He year for which they are levied Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting Revenues are recognized as soon as they are both measurable and available Revenues are considered to be available if they are collected within the current period or soon enough thereafter to pay liabilities of the current period For this purpose the Township generally considers revenues to be available if they are expected to be collected within 60 days of the end of the current fiscal period Expenditures generally are recorded when a liability is incurred as under accrual accounting However debt service expenditures expenditures relating to compensated absences and claims and judgments are recorded only whenbull payment is due

Statetlrants licenses and permits charges for services and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period All other revenue items are considered to be me~surable only when cash is received by the Township

The Township reports the following major governmental funds

Themiddot General Fund is the Townships primary operating fund It accounts for all financial resources of the TownShip except those required to be accounted for in another fund Revenues are primarily derived from property taxes and state shared revenue

The Improvementmiddot Revolving Fund accounts for utility improvements financedmiddot through special assessments

The Public Safety Fund accounts for the financial resources used for the operational costs of the Townships public safety functions Revenues are derived from property taxes

The LeonardCrahenForesthill Pathways Fund accounts for the financial resources used for the construction and maintenance of nonmotorized trails within the Township Revenues are derived from transfers from the General Fund and private contributions

The Township reports a single proprietary fund the Building Inspections Fund which accounts for operations (1) that are financed and operated in a manner similar to private business enterprises shywhere the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges or (2) where the governing body has decided that periodic determination of revenues earned expenses incurred andor net income is appropriate for capital maintenance public policy management control accountability or other purposes

-15shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

c) Measurement focus basis of accounting and financial statement presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting as are the proprietary fund and fiduciary fund financial statements Revenues are recorded when earned and expenses are recorded when a liability is incurred regardless of the timing of related cash flows Property taxes are recognized as revenue in He year for which they are levied Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting Revenues are recognized as soon as they are both measurable and available Revenues are considered to be available if they are collected within the current period or soon enough thereafter to pay liabilities of the current period For this purpose the Township generally considers revenues to be available if they are expected to be collected within 60 days of the end of the current fiscal period Expenditures generally are recorded when a liability is incurred as under accrual accounting However debt service expenditures expenditures relating to compensated absences and claims and judgments are recorded only whenbull payment is due

Statetlrants licenses and permits charges for services and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period All other revenue items are considered to be me~surable only when cash is received by the Township

The Township reports the following major governmental funds

Themiddot General Fund is the Townships primary operating fund It accounts for all financial resources of the TownShip except those required to be accounted for in another fund Revenues are primarily derived from property taxes and state shared revenue

The Improvementmiddot Revolving Fund accounts for utility improvements financedmiddot through special assessments

The Public Safety Fund accounts for the financial resources used for the operational costs of the Townships public safety functions Revenues are derived from property taxes

The LeonardCrahenForesthill Pathways Fund accounts for the financial resources used for the construction and maintenance of nonmotorized trails within the Township Revenues are derived from transfers from the General Fund and private contributions

The Township reports a single proprietary fund the Building Inspections Fund which accounts for operations (1) that are financed and operated in a manner similar to private business enterprises shywhere the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges or (2) where the governing body has decided that periodic determination of revenues earned expenses incurred andor net income is appropriate for capital maintenance public policy management control accountability or other purposes

-15shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

c) Measurement focus basis ofaccounting and financial statement presentation (continued) The Township reports fiduciary funds its Agency and Tax Collection funds which account for assets held by the Township as an agent for individuals private organizations other governments andor other funds Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations

Amounts reported as program revenues include (1) charges to customers or applicants for goods services or privileges provided (2) operating grants and contributions and (3) capital grants and contributions Internally dedicated resources are reported as general revenues rather than as program revenues Likewise general revenues include all taxes

Private-sector standards of accounting issued prior to December 1 1989 are generally followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with the standards of the Governmental Accounting Standards Board (GASB) Governments also have the option of following subsequent private sector guidance for their business-type activities and enterprise funds subject to this same limitation The Township has elected not to follow subsequent private-sector standards

Proprietary funds distinguish operating revenues and expenses from nonoperating items Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary funds principal ongoing operations The principal operating revenues of the proprietary funds relate to charges to customers for services Operating expenses for proprietary funds include the cost of services administrative expenses and depreciation on capital assets A revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses

When both restricted and unrestricted resources are available for use it is the Townships policy to use restricted resources first then unrestricted resources as they are needed

d) Assets liabilities and net assets or equity i) Bank deposits - Cash is considered to be cash on hand demand deposits and short-term investments with original maturities of three months or less from the date of acquisition Pooled interest income is proportionately allocated to all funds

ii) Receivables - In general outstanding balances between funds are reported as due tofrom other funds No allowance for uncollectible accounts has been recorded as the Township considers a receivables to be fully collectible

iii) Prepaid items - Certain payments to vendors reflect costs applicable to future fiscal years and are recorded as prepaid items in the government-wide financial statements

-16shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

d) Assets liabilities and net assets or equity (continued) ivY Capital assets - Capital assets which include land buildings equipment and infrastructure assets (eg shared road costs pathways and similar items) are reported in the governmentshywide financial statements Capital assets other than infrastructure are defined by the Township as assets with an initial individual cost of more than $2500 and an estimated useful life in excess of two years Such assets are recorded at historical cost or estimated historical cost if purchased or constructed Donated capital assets are recorded at estimated fair market value at the date of donation Governments can elect to account for infrastructure assets either retroactively to June 15 1980 or prospectively The Township has elected to account for infrastructure assets retroactively

Capital assets are depreciated using the straight-line method over the following useful lives

Buildings and improvements 40 years Land improvements 20 years Equipment 5 - 10 years Vehicles 10 - 15 years

v) Fund equity - In the fund financial statements governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose Designations of fund balance represent tentative management plans that are subject to change r vi) Property tax revenue recognition - Property taxes are levied as of December 1 on property values assessed as of December 31 of the prior year The billings are due on February 14 (with the final collection date of February 28) at which time the bill becomes delinquent and penalties and interest may be assessed by the Township Prop~rty tax revenue is recognized in the year

for which taxes have been levied and become available The Township levy date is December 1 and accordingly taxes have been deferred from recognition as revenue until the following year

The 2008 taxable valuation of the Township totaled $887535646 on which ad valorem taxes levied consisted of the following

Millage Taxes Fund rate Purpose raised

General 07500 Operating $ 665641 Public safety 08495 Public safety 753944

-17shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 2 - STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY

Budgetary information - Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the general and special revenue funds The budget document presents information by fund function department and line-item The legal level of budgetary control adopted by the governing body is the function level All annual appropriations lapse at the end of the fiscal year

Excess of expenditures over appropriations variance

- The following schedule sets forth a significant budget

Fund Function Amended

budget Actual Variance

General Capital outlay $ 48200 $ 54014 $ 5814

NOTE 3 - CASH AND INVESTMENTS

The Townships deposits and investments were reported in the basic financial statements as follows

Governmental Fiduciary activities funds Totals

Cash $ 2228187 $ 914240 $ 3142427 Investments 2397940 2397940

Totals $ 4626127 $ 914240 $ 5540367

Deposits Michigan Compiled Laws Section 12991 (Public Act 20 of 1943 as amended) and the Townships investment policy authorize the Township to make deposits in the accounts of federally-insured banks credit unions and savings and loan associations that have an office in Michigan The Townships deposits are in accordance with statutory authority

Custodial credit risk is the risk that in the event of the failure of a financial institution the Township will not be able to recover its deposits Deposits are exposed to custodial credit risk if they are not covered by federal depository insurance As of December 31 2008 $2508828 of the Townships bank balances of $3008828 was exposed to custodial credit risk because it was uninsured The Township believes that it is impractical to insure all bank deposits The Township evaluates each financial institution with which it deposits funds and assesses the risk level of each financial institution Only the institutions with an acceptable estimated risk level are used as depositories

Investments State statutes authorize the Township to invest in a) obligations of the US Treasury agencies and instrumentalities b) commercial paper with three (3) highest rate classifications by at least two (2) rating services maturing not later than 270 days c) repurchase agreements collateralized by US governmental securities d) bankers acceptances e) mutual funds and f) investment pools organized under the local government investment pool act The Townships investments consist of holdings in the Kent County Investment Pool and the Michigan Class Investment Pool which are nonrisk categorized qualifying investments that are carried at cost which approximates fair market value

-18shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 4 - RECEIVABLES

Receivables as of year end of the Townships funds are as follows

Special Property assess-

Fund Accounts taxes ments

Inter-governshymental Total

Governmental General Improvement Revolving Public Safety Nonmajor

Proprietary Building Inspections

Totals

$ 76115

76115

20563

_$ 96678

$ 346385

391845

738230

$ 738230

$ 96764

45591

142355

$ 142355

$ 168507

168507

$ 168507

$

$

591007 96764

391845 45591

1125207

20563

1145770

Noncurrent portion $ $ 89764 $ $ 89764

NOTE 5 - DEFERRED REVENUE

Governmental funds report deferred revenues in connection with resources that are not considered to be available to liquidate liabilities of the current period Governmental funds may also defer revenue recognition in connection with resources that have been received but not yet earned At the end of the current fiscal year several of the funds deferred recognition of revenues that were considered unearned or unavailable t December 31 2008 The types of revenues deferred by fund follow

-Unearned Unavailable

Unearned assess- assess-Fund ~- -taxes bull Jments ments Totals

General - $ 665641 $ $ $ 665641 Improvement Revolving 96764 96764 Public Safety 753944 753944 Nonmajor goverrimental 99370 99370

otafs $ 1419585 $ 99370 $ 96764 $ 1615719

-19shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 6 - CAPITAL ASSETS

Capital asset activity for the year ended December 31 2008 was as follows

Beginning Ending balance Increases Decreases balance

Governmental activities Capital assets not being depreciated - land $ 4974000 $ $ (675000) $ 4299000

Capital assets being depreciated Infrastructure - shared road costs 131350 263373 394723 Building and improvements 3191730 507549 3699279 Equipment 395333 12431 407764 Vehicles 942257 28700 970957

Subtotal 4660670 812053 5472723

Less accumulated depreciation for Infrastructure - shared road costs (5930) (5140) (11070) Buildings and improvements (1175456) (117794) (1293250) Equipment (205964) (32889) (238853) Vehicles (645774) (99398) (745172)

Subtotal (2033124) (255221) (2288345)

Total capital assets being depreciated net 2627546 556832 3184378

Governmental activities capital assets net $ 7601546 $ 556832 $ ~675000) $ 7483378

Depreciation expense was charged to functions of the Township as follows

Governmental activities General government Public safety Public works Recreation and culture

$ 51496 129004

11707 63014

Total $ 255221

-20shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 7 - PAYABLES

Payables as of year end of the Townships funds are as follows

Inter-

Fund Accounts Payroll governshymental Totals

Governmental General Pathways Nonmajor governmental

$ 18205 1540 7441

$ 30640 $ 54467 $ 103312 1540 7441

Proprietary Building Inspectiltns

27186 30640 54467

16451

112293

16451

- Totals $ 27186 $ 30640 $ 70918 $ 128744

-NOTE 8 -- INTERFUND TRANSFERS

Interfund transfers for the year ended December 312008 are as follows

Fund Transfer- Fund Transfer out

General $ 731519 Public Safety $ 731519

LeonardCrahEmForesthil1 Pathways 420000

Nonmajor governmental 70000

490000 General 490000

Totals $ 1221519 Totals $ 1221519

The transfer to the General Fund represents restricted revenues collected in the Public Safety Fund to -gtay for operational costs of the public safety functions accounted for in the General Fund The transfers

to the LeonardCrahenForesthill Pathways and non major governmental funds consist of unrestricted General Fund resources that support various programs that are accounted for in other funds of the Township

NOTE 9 - RISK MANAGEMENT

The Township is exposed to various risks of loss related to property loss torts errors and omissions and employee injuries (workers compensation) The Township has purchased commercial insurance for each of these claims and is neither self-insured nor participates in a shared-risk pool Settled claims relating to commercial insurance have not exceeded the amount of insurance coverage in any of the past three fiscal years

-21shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 10 - DEFINED CONTRIBUTION PENSION PLAN

The Township provides pension benefits for most of its employees through a defined contribution plan The plan covers all full-time employees and Grand Rapids Charter Township officials with supervisory duties In a defined contribution plan benefits depend solely on amounts contributed to the plan plus investment earnings Employees are eligible to participate from the date of employment The Township contributes a percentage of each qualified employees base salary to the plan The Township contributes 12 for non-union employees and union employees The Townships contributions are fully vested immediately The Township made the required contributions of $73730 for the year ended December 312008

The Township is not a trustee of the plan nor is the Township responsible for investment management of plan assets

NOTE 11 - RESTRICTED NET ASSETS

Net assets of the governmental activities as of December 31 2008 are restricted for the following purposes

Public safety - construction code inspections $ 84458

Public works Courthouse at Knapps Comer 152160 Lakes management 17142 Street lighting and maintenance 5073

Total public works 174375

Total $ 258833

-22shy

REQUIRED SUPPLEMENTARY INFORMATION

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULEmiddot General Fund Year ended December 31 2008

-23shy

I

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULEmiddot General Fund (Continued) Year ended December 31 2008

Variance Original Amended favorable budset budset Actual (unfavorablel

EXPENDITURES (Continued) Health and welfare - ambulance $ 111400 $ 111400 $ 105869 $ 5531

Community and economic development shyplanning and zoning 137529 137529 91337 46192

Recreation and culture - parks and recreation 19500 19500 11879 7621

Capital outlay 48200 48200 54014 (5814)

Total expenditures 2520196 2801862 2644292 157570

DEFICIENCY OF REVENUES OVER EXPENDITURES (223276) (904942) (567321 ) 337621

OTHER FINANCING SOURCES (USES) Transfer in - Public Safety Fund

Transfers out LeonardCrahenForest Hills

Pathway Fund Courthouse at Knapps Corner Fund East Beltline Gateway Fund

732250

(420000)

732250

420000 (50000) (20000)

731519

(420000) 50000 (20000)

731)

Total transfers out (420000) (490000) (490000)

Total other financing sources 312250 242250 241519 (731 )

NET CHANGES IN FUND BALANCES 88974 (662692) (325802) 336890

FUND BALANCESmiddot BEGINNING 1195343 1195343 1195343

FUND BALANCES - ENDING $1284317 $ 532651 $ 869541 $ 336890

-24shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE -Improvement Revolving Fund Year ended December 31 2008

Variance Original Amended favorable budset budset Actual (unfavorablel

REVENUES Interest $ 92500 $ 92500 $ 76275 $ (16225) Other - special assessments 7694 7694 13270 5576

Total revenues 100194 100194 89545 (10649)

SPECIAL ITEM Proceeds from sale of land 891088 891088

NET CHANGES IN FUND BALANCES 100194 100194 980633 880439

FUND BALANCES - BEGINNING 1900242 1900242 1900242

FUND BALANCES - ENDING $ 2000436 $ 2000436 $2880875 $ 880439

I -shy

1

-25shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE - Public Safety Fund Year ended December 31 2008

REVENUES Property taxes $

Original budget

646500

Amended budget

$ 732250

Actual

$ 731519

Variance favorable

(unfavorable)

$ (731)

OTHER FINANCING USES Transfer out - General Fund 646500) 732250) 731519) 731

NET CHANGES IN FUND BALANCES

FUND BALANCES - BEGINNING

FUND BALANCES - ENDING $ $ $ $

-26shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE - LeonardlCrahenlForesthill Pathways Fund Year ended December 312008

Variance Original Amended favorable budset budset Actual (unfavorablel

REVENUES Interest $ 500 $ 500 $ 2640 $ 2140 Other - private contributions 700000 280000 79916 (200084)

Total revenues 700500 280500 82556 (197944)

EXPEN DITU RES Capital outlay 700000 700000 507549 192451

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 500 (419500) (424993) (390395)

OTHER FINANCING SOURCES Transfers in - Genera(Fund 420000 420000

NET CHANGES IN FUND BALANCES 500 500 (4993) (390395)

FUND BALANCE ~ BEGINNING 21650 21650 21650

- FUND BALANCE - ENDING $ 22150 $ 22150 $ 16657 $ 390395)

-

-27shy

SUPPLEMENTARY INFORMATION

Grand Rapids Charter Township COMBINING BALANCE SHEET - nonmajor governmental funds December 31 2008

Seecial revenue funds

East Lakes Lighting and Courthouse at Beltline

Mana9ement Maintenance Knapps Comer Gatewar Totals

ASSETS Cash $ 29078 $ 54357 $ 152160 $ 1528 $ 237123 Receivables 11754 33837 45591

Total assets $ 40832 $ 88194 $ 152160 $ 1528 $282714

LIABILITIES AND FUND BALANCES

Liabilities Payables $ $ 7441 $ $ $ 7441 Deferred revenue 23690 75680 99370

~ bull t

Total liabilities 23690 83121 106811

Fund balances - unreserved -undesignated 17142 5073 152160 1528 175903

rTotal liabilities and fund balances $ 40832 $ 88194 $ 152160 $ 1528 $282714 I

shy

l I I

-28shy

Grand Rapids Charter Township COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - nonmajor governmental funds Year ended December 31 2008

Seecial revenue funds

REVENUES Intergovernmental Interest Other

Special assessments Private contributions Miscellaneous

Total revenues

EXPENDITURES Public works

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

OTHER FINANCING SOURCES Transfers in - General Fund

NET CHANGES IN FUND BALANCES

FUND BALANCE - BEGINNING

FUND BALANCE - ENDING

Lakes Lighting and Management Maintenance

$ 2

23528

23530

$ 2

70500

4425

74927

15702 81848

7828 (6921 )

7828

9314

$ 17142

(6921 )

11994

$ 5073

East Courthouse at Beltline

Knaees Corner Gatewar Totals

$ 100000 2160

102160

102160

50000

152160

$ 152160

$

4800

4800

23839

(19039)

20000

961

567

$ 1528

$100000 2164

94028 4800 4425

205417

121389

84028

70000

154028

$175903

-29shy

21875

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

d) Assets liabilities and net assets or equity (continued) ivY Capital assets - Capital assets which include land buildings equipment and infrastructure assets (eg shared road costs pathways and similar items) are reported in the governmentshywide financial statements Capital assets other than infrastructure are defined by the Township as assets with an initial individual cost of more than $2500 and an estimated useful life in excess of two years Such assets are recorded at historical cost or estimated historical cost if purchased or constructed Donated capital assets are recorded at estimated fair market value at the date of donation Governments can elect to account for infrastructure assets either retroactively to June 15 1980 or prospectively The Township has elected to account for infrastructure assets retroactively

Capital assets are depreciated using the straight-line method over the following useful lives

Buildings and improvements 40 years Land improvements 20 years Equipment 5 - 10 years Vehicles 10 - 15 years

v) Fund equity - In the fund financial statements governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose Designations of fund balance represent tentative management plans that are subject to change r vi) Property tax revenue recognition - Property taxes are levied as of December 1 on property values assessed as of December 31 of the prior year The billings are due on February 14 (with the final collection date of February 28) at which time the bill becomes delinquent and penalties and interest may be assessed by the Township Prop~rty tax revenue is recognized in the year

for which taxes have been levied and become available The Township levy date is December 1 and accordingly taxes have been deferred from recognition as revenue until the following year

The 2008 taxable valuation of the Township totaled $887535646 on which ad valorem taxes levied consisted of the following

Millage Taxes Fund rate Purpose raised

General 07500 Operating $ 665641 Public safety 08495 Public safety 753944

-17shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 2 - STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY

Budgetary information - Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the general and special revenue funds The budget document presents information by fund function department and line-item The legal level of budgetary control adopted by the governing body is the function level All annual appropriations lapse at the end of the fiscal year

Excess of expenditures over appropriations variance

- The following schedule sets forth a significant budget

Fund Function Amended

budget Actual Variance

General Capital outlay $ 48200 $ 54014 $ 5814

NOTE 3 - CASH AND INVESTMENTS

The Townships deposits and investments were reported in the basic financial statements as follows

Governmental Fiduciary activities funds Totals

Cash $ 2228187 $ 914240 $ 3142427 Investments 2397940 2397940

Totals $ 4626127 $ 914240 $ 5540367

Deposits Michigan Compiled Laws Section 12991 (Public Act 20 of 1943 as amended) and the Townships investment policy authorize the Township to make deposits in the accounts of federally-insured banks credit unions and savings and loan associations that have an office in Michigan The Townships deposits are in accordance with statutory authority

Custodial credit risk is the risk that in the event of the failure of a financial institution the Township will not be able to recover its deposits Deposits are exposed to custodial credit risk if they are not covered by federal depository insurance As of December 31 2008 $2508828 of the Townships bank balances of $3008828 was exposed to custodial credit risk because it was uninsured The Township believes that it is impractical to insure all bank deposits The Township evaluates each financial institution with which it deposits funds and assesses the risk level of each financial institution Only the institutions with an acceptable estimated risk level are used as depositories

Investments State statutes authorize the Township to invest in a) obligations of the US Treasury agencies and instrumentalities b) commercial paper with three (3) highest rate classifications by at least two (2) rating services maturing not later than 270 days c) repurchase agreements collateralized by US governmental securities d) bankers acceptances e) mutual funds and f) investment pools organized under the local government investment pool act The Townships investments consist of holdings in the Kent County Investment Pool and the Michigan Class Investment Pool which are nonrisk categorized qualifying investments that are carried at cost which approximates fair market value

-18shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 4 - RECEIVABLES

Receivables as of year end of the Townships funds are as follows

Special Property assess-

Fund Accounts taxes ments

Inter-governshymental Total

Governmental General Improvement Revolving Public Safety Nonmajor

Proprietary Building Inspections

Totals

$ 76115

76115

20563

_$ 96678

$ 346385

391845

738230

$ 738230

$ 96764

45591

142355

$ 142355

$ 168507

168507

$ 168507

$

$

591007 96764

391845 45591

1125207

20563

1145770

Noncurrent portion $ $ 89764 $ $ 89764

NOTE 5 - DEFERRED REVENUE

Governmental funds report deferred revenues in connection with resources that are not considered to be available to liquidate liabilities of the current period Governmental funds may also defer revenue recognition in connection with resources that have been received but not yet earned At the end of the current fiscal year several of the funds deferred recognition of revenues that were considered unearned or unavailable t December 31 2008 The types of revenues deferred by fund follow

-Unearned Unavailable

Unearned assess- assess-Fund ~- -taxes bull Jments ments Totals

General - $ 665641 $ $ $ 665641 Improvement Revolving 96764 96764 Public Safety 753944 753944 Nonmajor goverrimental 99370 99370

otafs $ 1419585 $ 99370 $ 96764 $ 1615719

-19shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 6 - CAPITAL ASSETS

Capital asset activity for the year ended December 31 2008 was as follows

Beginning Ending balance Increases Decreases balance

Governmental activities Capital assets not being depreciated - land $ 4974000 $ $ (675000) $ 4299000

Capital assets being depreciated Infrastructure - shared road costs 131350 263373 394723 Building and improvements 3191730 507549 3699279 Equipment 395333 12431 407764 Vehicles 942257 28700 970957

Subtotal 4660670 812053 5472723

Less accumulated depreciation for Infrastructure - shared road costs (5930) (5140) (11070) Buildings and improvements (1175456) (117794) (1293250) Equipment (205964) (32889) (238853) Vehicles (645774) (99398) (745172)

Subtotal (2033124) (255221) (2288345)

Total capital assets being depreciated net 2627546 556832 3184378

Governmental activities capital assets net $ 7601546 $ 556832 $ ~675000) $ 7483378

Depreciation expense was charged to functions of the Township as follows

Governmental activities General government Public safety Public works Recreation and culture

$ 51496 129004

11707 63014

Total $ 255221

-20shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 7 - PAYABLES

Payables as of year end of the Townships funds are as follows

Inter-

Fund Accounts Payroll governshymental Totals

Governmental General Pathways Nonmajor governmental

$ 18205 1540 7441

$ 30640 $ 54467 $ 103312 1540 7441

Proprietary Building Inspectiltns

27186 30640 54467

16451

112293

16451

- Totals $ 27186 $ 30640 $ 70918 $ 128744

-NOTE 8 -- INTERFUND TRANSFERS

Interfund transfers for the year ended December 312008 are as follows

Fund Transfer- Fund Transfer out

General $ 731519 Public Safety $ 731519

LeonardCrahEmForesthil1 Pathways 420000

Nonmajor governmental 70000

490000 General 490000

Totals $ 1221519 Totals $ 1221519

The transfer to the General Fund represents restricted revenues collected in the Public Safety Fund to -gtay for operational costs of the public safety functions accounted for in the General Fund The transfers

to the LeonardCrahenForesthill Pathways and non major governmental funds consist of unrestricted General Fund resources that support various programs that are accounted for in other funds of the Township

NOTE 9 - RISK MANAGEMENT

The Township is exposed to various risks of loss related to property loss torts errors and omissions and employee injuries (workers compensation) The Township has purchased commercial insurance for each of these claims and is neither self-insured nor participates in a shared-risk pool Settled claims relating to commercial insurance have not exceeded the amount of insurance coverage in any of the past three fiscal years

-21shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 10 - DEFINED CONTRIBUTION PENSION PLAN

The Township provides pension benefits for most of its employees through a defined contribution plan The plan covers all full-time employees and Grand Rapids Charter Township officials with supervisory duties In a defined contribution plan benefits depend solely on amounts contributed to the plan plus investment earnings Employees are eligible to participate from the date of employment The Township contributes a percentage of each qualified employees base salary to the plan The Township contributes 12 for non-union employees and union employees The Townships contributions are fully vested immediately The Township made the required contributions of $73730 for the year ended December 312008

The Township is not a trustee of the plan nor is the Township responsible for investment management of plan assets

NOTE 11 - RESTRICTED NET ASSETS

Net assets of the governmental activities as of December 31 2008 are restricted for the following purposes

Public safety - construction code inspections $ 84458

Public works Courthouse at Knapps Comer 152160 Lakes management 17142 Street lighting and maintenance 5073

Total public works 174375

Total $ 258833

-22shy

REQUIRED SUPPLEMENTARY INFORMATION

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULEmiddot General Fund Year ended December 31 2008

-23shy

I

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULEmiddot General Fund (Continued) Year ended December 31 2008

Variance Original Amended favorable budset budset Actual (unfavorablel

EXPENDITURES (Continued) Health and welfare - ambulance $ 111400 $ 111400 $ 105869 $ 5531

Community and economic development shyplanning and zoning 137529 137529 91337 46192

Recreation and culture - parks and recreation 19500 19500 11879 7621

Capital outlay 48200 48200 54014 (5814)

Total expenditures 2520196 2801862 2644292 157570

DEFICIENCY OF REVENUES OVER EXPENDITURES (223276) (904942) (567321 ) 337621

OTHER FINANCING SOURCES (USES) Transfer in - Public Safety Fund

Transfers out LeonardCrahenForest Hills

Pathway Fund Courthouse at Knapps Corner Fund East Beltline Gateway Fund

732250

(420000)

732250

420000 (50000) (20000)

731519

(420000) 50000 (20000)

731)

Total transfers out (420000) (490000) (490000)

Total other financing sources 312250 242250 241519 (731 )

NET CHANGES IN FUND BALANCES 88974 (662692) (325802) 336890

FUND BALANCESmiddot BEGINNING 1195343 1195343 1195343

FUND BALANCES - ENDING $1284317 $ 532651 $ 869541 $ 336890

-24shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE -Improvement Revolving Fund Year ended December 31 2008

Variance Original Amended favorable budset budset Actual (unfavorablel

REVENUES Interest $ 92500 $ 92500 $ 76275 $ (16225) Other - special assessments 7694 7694 13270 5576

Total revenues 100194 100194 89545 (10649)

SPECIAL ITEM Proceeds from sale of land 891088 891088

NET CHANGES IN FUND BALANCES 100194 100194 980633 880439

FUND BALANCES - BEGINNING 1900242 1900242 1900242

FUND BALANCES - ENDING $ 2000436 $ 2000436 $2880875 $ 880439

I -shy

1

-25shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE - Public Safety Fund Year ended December 31 2008

REVENUES Property taxes $

Original budget

646500

Amended budget

$ 732250

Actual

$ 731519

Variance favorable

(unfavorable)

$ (731)

OTHER FINANCING USES Transfer out - General Fund 646500) 732250) 731519) 731

NET CHANGES IN FUND BALANCES

FUND BALANCES - BEGINNING

FUND BALANCES - ENDING $ $ $ $

-26shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE - LeonardlCrahenlForesthill Pathways Fund Year ended December 312008

Variance Original Amended favorable budset budset Actual (unfavorablel

REVENUES Interest $ 500 $ 500 $ 2640 $ 2140 Other - private contributions 700000 280000 79916 (200084)

Total revenues 700500 280500 82556 (197944)

EXPEN DITU RES Capital outlay 700000 700000 507549 192451

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 500 (419500) (424993) (390395)

OTHER FINANCING SOURCES Transfers in - Genera(Fund 420000 420000

NET CHANGES IN FUND BALANCES 500 500 (4993) (390395)

FUND BALANCE ~ BEGINNING 21650 21650 21650

- FUND BALANCE - ENDING $ 22150 $ 22150 $ 16657 $ 390395)

-

-27shy

SUPPLEMENTARY INFORMATION

Grand Rapids Charter Township COMBINING BALANCE SHEET - nonmajor governmental funds December 31 2008

Seecial revenue funds

East Lakes Lighting and Courthouse at Beltline

Mana9ement Maintenance Knapps Comer Gatewar Totals

ASSETS Cash $ 29078 $ 54357 $ 152160 $ 1528 $ 237123 Receivables 11754 33837 45591

Total assets $ 40832 $ 88194 $ 152160 $ 1528 $282714

LIABILITIES AND FUND BALANCES

Liabilities Payables $ $ 7441 $ $ $ 7441 Deferred revenue 23690 75680 99370

~ bull t

Total liabilities 23690 83121 106811

Fund balances - unreserved -undesignated 17142 5073 152160 1528 175903

rTotal liabilities and fund balances $ 40832 $ 88194 $ 152160 $ 1528 $282714 I

shy

l I I

-28shy

Grand Rapids Charter Township COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - nonmajor governmental funds Year ended December 31 2008

Seecial revenue funds

REVENUES Intergovernmental Interest Other

Special assessments Private contributions Miscellaneous

Total revenues

EXPENDITURES Public works

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

OTHER FINANCING SOURCES Transfers in - General Fund

NET CHANGES IN FUND BALANCES

FUND BALANCE - BEGINNING

FUND BALANCE - ENDING

Lakes Lighting and Management Maintenance

$ 2

23528

23530

$ 2

70500

4425

74927

15702 81848

7828 (6921 )

7828

9314

$ 17142

(6921 )

11994

$ 5073

East Courthouse at Beltline

Knaees Corner Gatewar Totals

$ 100000 2160

102160

102160

50000

152160

$ 152160

$

4800

4800

23839

(19039)

20000

961

567

$ 1528

$100000 2164

94028 4800 4425

205417

121389

84028

70000

154028

$175903

-29shy

21875

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 2 - STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY

Budgetary information - Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the general and special revenue funds The budget document presents information by fund function department and line-item The legal level of budgetary control adopted by the governing body is the function level All annual appropriations lapse at the end of the fiscal year

Excess of expenditures over appropriations variance

- The following schedule sets forth a significant budget

Fund Function Amended

budget Actual Variance

General Capital outlay $ 48200 $ 54014 $ 5814

NOTE 3 - CASH AND INVESTMENTS

The Townships deposits and investments were reported in the basic financial statements as follows

Governmental Fiduciary activities funds Totals

Cash $ 2228187 $ 914240 $ 3142427 Investments 2397940 2397940

Totals $ 4626127 $ 914240 $ 5540367

Deposits Michigan Compiled Laws Section 12991 (Public Act 20 of 1943 as amended) and the Townships investment policy authorize the Township to make deposits in the accounts of federally-insured banks credit unions and savings and loan associations that have an office in Michigan The Townships deposits are in accordance with statutory authority

Custodial credit risk is the risk that in the event of the failure of a financial institution the Township will not be able to recover its deposits Deposits are exposed to custodial credit risk if they are not covered by federal depository insurance As of December 31 2008 $2508828 of the Townships bank balances of $3008828 was exposed to custodial credit risk because it was uninsured The Township believes that it is impractical to insure all bank deposits The Township evaluates each financial institution with which it deposits funds and assesses the risk level of each financial institution Only the institutions with an acceptable estimated risk level are used as depositories

Investments State statutes authorize the Township to invest in a) obligations of the US Treasury agencies and instrumentalities b) commercial paper with three (3) highest rate classifications by at least two (2) rating services maturing not later than 270 days c) repurchase agreements collateralized by US governmental securities d) bankers acceptances e) mutual funds and f) investment pools organized under the local government investment pool act The Townships investments consist of holdings in the Kent County Investment Pool and the Michigan Class Investment Pool which are nonrisk categorized qualifying investments that are carried at cost which approximates fair market value

-18shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 4 - RECEIVABLES

Receivables as of year end of the Townships funds are as follows

Special Property assess-

Fund Accounts taxes ments

Inter-governshymental Total

Governmental General Improvement Revolving Public Safety Nonmajor

Proprietary Building Inspections

Totals

$ 76115

76115

20563

_$ 96678

$ 346385

391845

738230

$ 738230

$ 96764

45591

142355

$ 142355

$ 168507

168507

$ 168507

$

$

591007 96764

391845 45591

1125207

20563

1145770

Noncurrent portion $ $ 89764 $ $ 89764

NOTE 5 - DEFERRED REVENUE

Governmental funds report deferred revenues in connection with resources that are not considered to be available to liquidate liabilities of the current period Governmental funds may also defer revenue recognition in connection with resources that have been received but not yet earned At the end of the current fiscal year several of the funds deferred recognition of revenues that were considered unearned or unavailable t December 31 2008 The types of revenues deferred by fund follow

-Unearned Unavailable

Unearned assess- assess-Fund ~- -taxes bull Jments ments Totals

General - $ 665641 $ $ $ 665641 Improvement Revolving 96764 96764 Public Safety 753944 753944 Nonmajor goverrimental 99370 99370

otafs $ 1419585 $ 99370 $ 96764 $ 1615719

-19shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 6 - CAPITAL ASSETS

Capital asset activity for the year ended December 31 2008 was as follows

Beginning Ending balance Increases Decreases balance

Governmental activities Capital assets not being depreciated - land $ 4974000 $ $ (675000) $ 4299000

Capital assets being depreciated Infrastructure - shared road costs 131350 263373 394723 Building and improvements 3191730 507549 3699279 Equipment 395333 12431 407764 Vehicles 942257 28700 970957

Subtotal 4660670 812053 5472723

Less accumulated depreciation for Infrastructure - shared road costs (5930) (5140) (11070) Buildings and improvements (1175456) (117794) (1293250) Equipment (205964) (32889) (238853) Vehicles (645774) (99398) (745172)

Subtotal (2033124) (255221) (2288345)

Total capital assets being depreciated net 2627546 556832 3184378

Governmental activities capital assets net $ 7601546 $ 556832 $ ~675000) $ 7483378

Depreciation expense was charged to functions of the Township as follows

Governmental activities General government Public safety Public works Recreation and culture

$ 51496 129004

11707 63014

Total $ 255221

-20shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 7 - PAYABLES

Payables as of year end of the Townships funds are as follows

Inter-

Fund Accounts Payroll governshymental Totals

Governmental General Pathways Nonmajor governmental

$ 18205 1540 7441

$ 30640 $ 54467 $ 103312 1540 7441

Proprietary Building Inspectiltns

27186 30640 54467

16451

112293

16451

- Totals $ 27186 $ 30640 $ 70918 $ 128744

-NOTE 8 -- INTERFUND TRANSFERS

Interfund transfers for the year ended December 312008 are as follows

Fund Transfer- Fund Transfer out

General $ 731519 Public Safety $ 731519

LeonardCrahEmForesthil1 Pathways 420000

Nonmajor governmental 70000

490000 General 490000

Totals $ 1221519 Totals $ 1221519

The transfer to the General Fund represents restricted revenues collected in the Public Safety Fund to -gtay for operational costs of the public safety functions accounted for in the General Fund The transfers

to the LeonardCrahenForesthill Pathways and non major governmental funds consist of unrestricted General Fund resources that support various programs that are accounted for in other funds of the Township

NOTE 9 - RISK MANAGEMENT

The Township is exposed to various risks of loss related to property loss torts errors and omissions and employee injuries (workers compensation) The Township has purchased commercial insurance for each of these claims and is neither self-insured nor participates in a shared-risk pool Settled claims relating to commercial insurance have not exceeded the amount of insurance coverage in any of the past three fiscal years

-21shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 10 - DEFINED CONTRIBUTION PENSION PLAN

The Township provides pension benefits for most of its employees through a defined contribution plan The plan covers all full-time employees and Grand Rapids Charter Township officials with supervisory duties In a defined contribution plan benefits depend solely on amounts contributed to the plan plus investment earnings Employees are eligible to participate from the date of employment The Township contributes a percentage of each qualified employees base salary to the plan The Township contributes 12 for non-union employees and union employees The Townships contributions are fully vested immediately The Township made the required contributions of $73730 for the year ended December 312008

The Township is not a trustee of the plan nor is the Township responsible for investment management of plan assets

NOTE 11 - RESTRICTED NET ASSETS

Net assets of the governmental activities as of December 31 2008 are restricted for the following purposes

Public safety - construction code inspections $ 84458

Public works Courthouse at Knapps Comer 152160 Lakes management 17142 Street lighting and maintenance 5073

Total public works 174375

Total $ 258833

-22shy

REQUIRED SUPPLEMENTARY INFORMATION

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULEmiddot General Fund Year ended December 31 2008

-23shy

I

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULEmiddot General Fund (Continued) Year ended December 31 2008

Variance Original Amended favorable budset budset Actual (unfavorablel

EXPENDITURES (Continued) Health and welfare - ambulance $ 111400 $ 111400 $ 105869 $ 5531

Community and economic development shyplanning and zoning 137529 137529 91337 46192

Recreation and culture - parks and recreation 19500 19500 11879 7621

Capital outlay 48200 48200 54014 (5814)

Total expenditures 2520196 2801862 2644292 157570

DEFICIENCY OF REVENUES OVER EXPENDITURES (223276) (904942) (567321 ) 337621

OTHER FINANCING SOURCES (USES) Transfer in - Public Safety Fund

Transfers out LeonardCrahenForest Hills

Pathway Fund Courthouse at Knapps Corner Fund East Beltline Gateway Fund

732250

(420000)

732250

420000 (50000) (20000)

731519

(420000) 50000 (20000)

731)

Total transfers out (420000) (490000) (490000)

Total other financing sources 312250 242250 241519 (731 )

NET CHANGES IN FUND BALANCES 88974 (662692) (325802) 336890

FUND BALANCESmiddot BEGINNING 1195343 1195343 1195343

FUND BALANCES - ENDING $1284317 $ 532651 $ 869541 $ 336890

-24shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE -Improvement Revolving Fund Year ended December 31 2008

Variance Original Amended favorable budset budset Actual (unfavorablel

REVENUES Interest $ 92500 $ 92500 $ 76275 $ (16225) Other - special assessments 7694 7694 13270 5576

Total revenues 100194 100194 89545 (10649)

SPECIAL ITEM Proceeds from sale of land 891088 891088

NET CHANGES IN FUND BALANCES 100194 100194 980633 880439

FUND BALANCES - BEGINNING 1900242 1900242 1900242

FUND BALANCES - ENDING $ 2000436 $ 2000436 $2880875 $ 880439

I -shy

1

-25shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE - Public Safety Fund Year ended December 31 2008

REVENUES Property taxes $

Original budget

646500

Amended budget

$ 732250

Actual

$ 731519

Variance favorable

(unfavorable)

$ (731)

OTHER FINANCING USES Transfer out - General Fund 646500) 732250) 731519) 731

NET CHANGES IN FUND BALANCES

FUND BALANCES - BEGINNING

FUND BALANCES - ENDING $ $ $ $

-26shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE - LeonardlCrahenlForesthill Pathways Fund Year ended December 312008

Variance Original Amended favorable budset budset Actual (unfavorablel

REVENUES Interest $ 500 $ 500 $ 2640 $ 2140 Other - private contributions 700000 280000 79916 (200084)

Total revenues 700500 280500 82556 (197944)

EXPEN DITU RES Capital outlay 700000 700000 507549 192451

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 500 (419500) (424993) (390395)

OTHER FINANCING SOURCES Transfers in - Genera(Fund 420000 420000

NET CHANGES IN FUND BALANCES 500 500 (4993) (390395)

FUND BALANCE ~ BEGINNING 21650 21650 21650

- FUND BALANCE - ENDING $ 22150 $ 22150 $ 16657 $ 390395)

-

-27shy

SUPPLEMENTARY INFORMATION

Grand Rapids Charter Township COMBINING BALANCE SHEET - nonmajor governmental funds December 31 2008

Seecial revenue funds

East Lakes Lighting and Courthouse at Beltline

Mana9ement Maintenance Knapps Comer Gatewar Totals

ASSETS Cash $ 29078 $ 54357 $ 152160 $ 1528 $ 237123 Receivables 11754 33837 45591

Total assets $ 40832 $ 88194 $ 152160 $ 1528 $282714

LIABILITIES AND FUND BALANCES

Liabilities Payables $ $ 7441 $ $ $ 7441 Deferred revenue 23690 75680 99370

~ bull t

Total liabilities 23690 83121 106811

Fund balances - unreserved -undesignated 17142 5073 152160 1528 175903

rTotal liabilities and fund balances $ 40832 $ 88194 $ 152160 $ 1528 $282714 I

shy

l I I

-28shy

Grand Rapids Charter Township COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - nonmajor governmental funds Year ended December 31 2008

Seecial revenue funds

REVENUES Intergovernmental Interest Other

Special assessments Private contributions Miscellaneous

Total revenues

EXPENDITURES Public works

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

OTHER FINANCING SOURCES Transfers in - General Fund

NET CHANGES IN FUND BALANCES

FUND BALANCE - BEGINNING

FUND BALANCE - ENDING

Lakes Lighting and Management Maintenance

$ 2

23528

23530

$ 2

70500

4425

74927

15702 81848

7828 (6921 )

7828

9314

$ 17142

(6921 )

11994

$ 5073

East Courthouse at Beltline

Knaees Corner Gatewar Totals

$ 100000 2160

102160

102160

50000

152160

$ 152160

$

4800

4800

23839

(19039)

20000

961

567

$ 1528

$100000 2164

94028 4800 4425

205417

121389

84028

70000

154028

$175903

-29shy

21875

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 4 - RECEIVABLES

Receivables as of year end of the Townships funds are as follows

Special Property assess-

Fund Accounts taxes ments

Inter-governshymental Total

Governmental General Improvement Revolving Public Safety Nonmajor

Proprietary Building Inspections

Totals

$ 76115

76115

20563

_$ 96678

$ 346385

391845

738230

$ 738230

$ 96764

45591

142355

$ 142355

$ 168507

168507

$ 168507

$

$

591007 96764

391845 45591

1125207

20563

1145770

Noncurrent portion $ $ 89764 $ $ 89764

NOTE 5 - DEFERRED REVENUE

Governmental funds report deferred revenues in connection with resources that are not considered to be available to liquidate liabilities of the current period Governmental funds may also defer revenue recognition in connection with resources that have been received but not yet earned At the end of the current fiscal year several of the funds deferred recognition of revenues that were considered unearned or unavailable t December 31 2008 The types of revenues deferred by fund follow

-Unearned Unavailable

Unearned assess- assess-Fund ~- -taxes bull Jments ments Totals

General - $ 665641 $ $ $ 665641 Improvement Revolving 96764 96764 Public Safety 753944 753944 Nonmajor goverrimental 99370 99370

otafs $ 1419585 $ 99370 $ 96764 $ 1615719

-19shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 6 - CAPITAL ASSETS

Capital asset activity for the year ended December 31 2008 was as follows

Beginning Ending balance Increases Decreases balance

Governmental activities Capital assets not being depreciated - land $ 4974000 $ $ (675000) $ 4299000

Capital assets being depreciated Infrastructure - shared road costs 131350 263373 394723 Building and improvements 3191730 507549 3699279 Equipment 395333 12431 407764 Vehicles 942257 28700 970957

Subtotal 4660670 812053 5472723

Less accumulated depreciation for Infrastructure - shared road costs (5930) (5140) (11070) Buildings and improvements (1175456) (117794) (1293250) Equipment (205964) (32889) (238853) Vehicles (645774) (99398) (745172)

Subtotal (2033124) (255221) (2288345)

Total capital assets being depreciated net 2627546 556832 3184378

Governmental activities capital assets net $ 7601546 $ 556832 $ ~675000) $ 7483378

Depreciation expense was charged to functions of the Township as follows

Governmental activities General government Public safety Public works Recreation and culture

$ 51496 129004

11707 63014

Total $ 255221

-20shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 7 - PAYABLES

Payables as of year end of the Townships funds are as follows

Inter-

Fund Accounts Payroll governshymental Totals

Governmental General Pathways Nonmajor governmental

$ 18205 1540 7441

$ 30640 $ 54467 $ 103312 1540 7441

Proprietary Building Inspectiltns

27186 30640 54467

16451

112293

16451

- Totals $ 27186 $ 30640 $ 70918 $ 128744

-NOTE 8 -- INTERFUND TRANSFERS

Interfund transfers for the year ended December 312008 are as follows

Fund Transfer- Fund Transfer out

General $ 731519 Public Safety $ 731519

LeonardCrahEmForesthil1 Pathways 420000

Nonmajor governmental 70000

490000 General 490000

Totals $ 1221519 Totals $ 1221519

The transfer to the General Fund represents restricted revenues collected in the Public Safety Fund to -gtay for operational costs of the public safety functions accounted for in the General Fund The transfers

to the LeonardCrahenForesthill Pathways and non major governmental funds consist of unrestricted General Fund resources that support various programs that are accounted for in other funds of the Township

NOTE 9 - RISK MANAGEMENT

The Township is exposed to various risks of loss related to property loss torts errors and omissions and employee injuries (workers compensation) The Township has purchased commercial insurance for each of these claims and is neither self-insured nor participates in a shared-risk pool Settled claims relating to commercial insurance have not exceeded the amount of insurance coverage in any of the past three fiscal years

-21shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 10 - DEFINED CONTRIBUTION PENSION PLAN

The Township provides pension benefits for most of its employees through a defined contribution plan The plan covers all full-time employees and Grand Rapids Charter Township officials with supervisory duties In a defined contribution plan benefits depend solely on amounts contributed to the plan plus investment earnings Employees are eligible to participate from the date of employment The Township contributes a percentage of each qualified employees base salary to the plan The Township contributes 12 for non-union employees and union employees The Townships contributions are fully vested immediately The Township made the required contributions of $73730 for the year ended December 312008

The Township is not a trustee of the plan nor is the Township responsible for investment management of plan assets

NOTE 11 - RESTRICTED NET ASSETS

Net assets of the governmental activities as of December 31 2008 are restricted for the following purposes

Public safety - construction code inspections $ 84458

Public works Courthouse at Knapps Comer 152160 Lakes management 17142 Street lighting and maintenance 5073

Total public works 174375

Total $ 258833

-22shy

REQUIRED SUPPLEMENTARY INFORMATION

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULEmiddot General Fund Year ended December 31 2008

-23shy

I

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULEmiddot General Fund (Continued) Year ended December 31 2008

Variance Original Amended favorable budset budset Actual (unfavorablel

EXPENDITURES (Continued) Health and welfare - ambulance $ 111400 $ 111400 $ 105869 $ 5531

Community and economic development shyplanning and zoning 137529 137529 91337 46192

Recreation and culture - parks and recreation 19500 19500 11879 7621

Capital outlay 48200 48200 54014 (5814)

Total expenditures 2520196 2801862 2644292 157570

DEFICIENCY OF REVENUES OVER EXPENDITURES (223276) (904942) (567321 ) 337621

OTHER FINANCING SOURCES (USES) Transfer in - Public Safety Fund

Transfers out LeonardCrahenForest Hills

Pathway Fund Courthouse at Knapps Corner Fund East Beltline Gateway Fund

732250

(420000)

732250

420000 (50000) (20000)

731519

(420000) 50000 (20000)

731)

Total transfers out (420000) (490000) (490000)

Total other financing sources 312250 242250 241519 (731 )

NET CHANGES IN FUND BALANCES 88974 (662692) (325802) 336890

FUND BALANCESmiddot BEGINNING 1195343 1195343 1195343

FUND BALANCES - ENDING $1284317 $ 532651 $ 869541 $ 336890

-24shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE -Improvement Revolving Fund Year ended December 31 2008

Variance Original Amended favorable budset budset Actual (unfavorablel

REVENUES Interest $ 92500 $ 92500 $ 76275 $ (16225) Other - special assessments 7694 7694 13270 5576

Total revenues 100194 100194 89545 (10649)

SPECIAL ITEM Proceeds from sale of land 891088 891088

NET CHANGES IN FUND BALANCES 100194 100194 980633 880439

FUND BALANCES - BEGINNING 1900242 1900242 1900242

FUND BALANCES - ENDING $ 2000436 $ 2000436 $2880875 $ 880439

I -shy

1

-25shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE - Public Safety Fund Year ended December 31 2008

REVENUES Property taxes $

Original budget

646500

Amended budget

$ 732250

Actual

$ 731519

Variance favorable

(unfavorable)

$ (731)

OTHER FINANCING USES Transfer out - General Fund 646500) 732250) 731519) 731

NET CHANGES IN FUND BALANCES

FUND BALANCES - BEGINNING

FUND BALANCES - ENDING $ $ $ $

-26shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE - LeonardlCrahenlForesthill Pathways Fund Year ended December 312008

Variance Original Amended favorable budset budset Actual (unfavorablel

REVENUES Interest $ 500 $ 500 $ 2640 $ 2140 Other - private contributions 700000 280000 79916 (200084)

Total revenues 700500 280500 82556 (197944)

EXPEN DITU RES Capital outlay 700000 700000 507549 192451

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 500 (419500) (424993) (390395)

OTHER FINANCING SOURCES Transfers in - Genera(Fund 420000 420000

NET CHANGES IN FUND BALANCES 500 500 (4993) (390395)

FUND BALANCE ~ BEGINNING 21650 21650 21650

- FUND BALANCE - ENDING $ 22150 $ 22150 $ 16657 $ 390395)

-

-27shy

SUPPLEMENTARY INFORMATION

Grand Rapids Charter Township COMBINING BALANCE SHEET - nonmajor governmental funds December 31 2008

Seecial revenue funds

East Lakes Lighting and Courthouse at Beltline

Mana9ement Maintenance Knapps Comer Gatewar Totals

ASSETS Cash $ 29078 $ 54357 $ 152160 $ 1528 $ 237123 Receivables 11754 33837 45591

Total assets $ 40832 $ 88194 $ 152160 $ 1528 $282714

LIABILITIES AND FUND BALANCES

Liabilities Payables $ $ 7441 $ $ $ 7441 Deferred revenue 23690 75680 99370

~ bull t

Total liabilities 23690 83121 106811

Fund balances - unreserved -undesignated 17142 5073 152160 1528 175903

rTotal liabilities and fund balances $ 40832 $ 88194 $ 152160 $ 1528 $282714 I

shy

l I I

-28shy

Grand Rapids Charter Township COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - nonmajor governmental funds Year ended December 31 2008

Seecial revenue funds

REVENUES Intergovernmental Interest Other

Special assessments Private contributions Miscellaneous

Total revenues

EXPENDITURES Public works

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

OTHER FINANCING SOURCES Transfers in - General Fund

NET CHANGES IN FUND BALANCES

FUND BALANCE - BEGINNING

FUND BALANCE - ENDING

Lakes Lighting and Management Maintenance

$ 2

23528

23530

$ 2

70500

4425

74927

15702 81848

7828 (6921 )

7828

9314

$ 17142

(6921 )

11994

$ 5073

East Courthouse at Beltline

Knaees Corner Gatewar Totals

$ 100000 2160

102160

102160

50000

152160

$ 152160

$

4800

4800

23839

(19039)

20000

961

567

$ 1528

$100000 2164

94028 4800 4425

205417

121389

84028

70000

154028

$175903

-29shy

21875

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 6 - CAPITAL ASSETS

Capital asset activity for the year ended December 31 2008 was as follows

Beginning Ending balance Increases Decreases balance

Governmental activities Capital assets not being depreciated - land $ 4974000 $ $ (675000) $ 4299000

Capital assets being depreciated Infrastructure - shared road costs 131350 263373 394723 Building and improvements 3191730 507549 3699279 Equipment 395333 12431 407764 Vehicles 942257 28700 970957

Subtotal 4660670 812053 5472723

Less accumulated depreciation for Infrastructure - shared road costs (5930) (5140) (11070) Buildings and improvements (1175456) (117794) (1293250) Equipment (205964) (32889) (238853) Vehicles (645774) (99398) (745172)

Subtotal (2033124) (255221) (2288345)

Total capital assets being depreciated net 2627546 556832 3184378

Governmental activities capital assets net $ 7601546 $ 556832 $ ~675000) $ 7483378

Depreciation expense was charged to functions of the Township as follows

Governmental activities General government Public safety Public works Recreation and culture

$ 51496 129004

11707 63014

Total $ 255221

-20shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 7 - PAYABLES

Payables as of year end of the Townships funds are as follows

Inter-

Fund Accounts Payroll governshymental Totals

Governmental General Pathways Nonmajor governmental

$ 18205 1540 7441

$ 30640 $ 54467 $ 103312 1540 7441

Proprietary Building Inspectiltns

27186 30640 54467

16451

112293

16451

- Totals $ 27186 $ 30640 $ 70918 $ 128744

-NOTE 8 -- INTERFUND TRANSFERS

Interfund transfers for the year ended December 312008 are as follows

Fund Transfer- Fund Transfer out

General $ 731519 Public Safety $ 731519

LeonardCrahEmForesthil1 Pathways 420000

Nonmajor governmental 70000

490000 General 490000

Totals $ 1221519 Totals $ 1221519

The transfer to the General Fund represents restricted revenues collected in the Public Safety Fund to -gtay for operational costs of the public safety functions accounted for in the General Fund The transfers

to the LeonardCrahenForesthill Pathways and non major governmental funds consist of unrestricted General Fund resources that support various programs that are accounted for in other funds of the Township

NOTE 9 - RISK MANAGEMENT

The Township is exposed to various risks of loss related to property loss torts errors and omissions and employee injuries (workers compensation) The Township has purchased commercial insurance for each of these claims and is neither self-insured nor participates in a shared-risk pool Settled claims relating to commercial insurance have not exceeded the amount of insurance coverage in any of the past three fiscal years

-21shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 10 - DEFINED CONTRIBUTION PENSION PLAN

The Township provides pension benefits for most of its employees through a defined contribution plan The plan covers all full-time employees and Grand Rapids Charter Township officials with supervisory duties In a defined contribution plan benefits depend solely on amounts contributed to the plan plus investment earnings Employees are eligible to participate from the date of employment The Township contributes a percentage of each qualified employees base salary to the plan The Township contributes 12 for non-union employees and union employees The Townships contributions are fully vested immediately The Township made the required contributions of $73730 for the year ended December 312008

The Township is not a trustee of the plan nor is the Township responsible for investment management of plan assets

NOTE 11 - RESTRICTED NET ASSETS

Net assets of the governmental activities as of December 31 2008 are restricted for the following purposes

Public safety - construction code inspections $ 84458

Public works Courthouse at Knapps Comer 152160 Lakes management 17142 Street lighting and maintenance 5073

Total public works 174375

Total $ 258833

-22shy

REQUIRED SUPPLEMENTARY INFORMATION

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULEmiddot General Fund Year ended December 31 2008

-23shy

I

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULEmiddot General Fund (Continued) Year ended December 31 2008

Variance Original Amended favorable budset budset Actual (unfavorablel

EXPENDITURES (Continued) Health and welfare - ambulance $ 111400 $ 111400 $ 105869 $ 5531

Community and economic development shyplanning and zoning 137529 137529 91337 46192

Recreation and culture - parks and recreation 19500 19500 11879 7621

Capital outlay 48200 48200 54014 (5814)

Total expenditures 2520196 2801862 2644292 157570

DEFICIENCY OF REVENUES OVER EXPENDITURES (223276) (904942) (567321 ) 337621

OTHER FINANCING SOURCES (USES) Transfer in - Public Safety Fund

Transfers out LeonardCrahenForest Hills

Pathway Fund Courthouse at Knapps Corner Fund East Beltline Gateway Fund

732250

(420000)

732250

420000 (50000) (20000)

731519

(420000) 50000 (20000)

731)

Total transfers out (420000) (490000) (490000)

Total other financing sources 312250 242250 241519 (731 )

NET CHANGES IN FUND BALANCES 88974 (662692) (325802) 336890

FUND BALANCESmiddot BEGINNING 1195343 1195343 1195343

FUND BALANCES - ENDING $1284317 $ 532651 $ 869541 $ 336890

-24shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE -Improvement Revolving Fund Year ended December 31 2008

Variance Original Amended favorable budset budset Actual (unfavorablel

REVENUES Interest $ 92500 $ 92500 $ 76275 $ (16225) Other - special assessments 7694 7694 13270 5576

Total revenues 100194 100194 89545 (10649)

SPECIAL ITEM Proceeds from sale of land 891088 891088

NET CHANGES IN FUND BALANCES 100194 100194 980633 880439

FUND BALANCES - BEGINNING 1900242 1900242 1900242

FUND BALANCES - ENDING $ 2000436 $ 2000436 $2880875 $ 880439

I -shy

1

-25shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE - Public Safety Fund Year ended December 31 2008

REVENUES Property taxes $

Original budget

646500

Amended budget

$ 732250

Actual

$ 731519

Variance favorable

(unfavorable)

$ (731)

OTHER FINANCING USES Transfer out - General Fund 646500) 732250) 731519) 731

NET CHANGES IN FUND BALANCES

FUND BALANCES - BEGINNING

FUND BALANCES - ENDING $ $ $ $

-26shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE - LeonardlCrahenlForesthill Pathways Fund Year ended December 312008

Variance Original Amended favorable budset budset Actual (unfavorablel

REVENUES Interest $ 500 $ 500 $ 2640 $ 2140 Other - private contributions 700000 280000 79916 (200084)

Total revenues 700500 280500 82556 (197944)

EXPEN DITU RES Capital outlay 700000 700000 507549 192451

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 500 (419500) (424993) (390395)

OTHER FINANCING SOURCES Transfers in - Genera(Fund 420000 420000

NET CHANGES IN FUND BALANCES 500 500 (4993) (390395)

FUND BALANCE ~ BEGINNING 21650 21650 21650

- FUND BALANCE - ENDING $ 22150 $ 22150 $ 16657 $ 390395)

-

-27shy

SUPPLEMENTARY INFORMATION

Grand Rapids Charter Township COMBINING BALANCE SHEET - nonmajor governmental funds December 31 2008

Seecial revenue funds

East Lakes Lighting and Courthouse at Beltline

Mana9ement Maintenance Knapps Comer Gatewar Totals

ASSETS Cash $ 29078 $ 54357 $ 152160 $ 1528 $ 237123 Receivables 11754 33837 45591

Total assets $ 40832 $ 88194 $ 152160 $ 1528 $282714

LIABILITIES AND FUND BALANCES

Liabilities Payables $ $ 7441 $ $ $ 7441 Deferred revenue 23690 75680 99370

~ bull t

Total liabilities 23690 83121 106811

Fund balances - unreserved -undesignated 17142 5073 152160 1528 175903

rTotal liabilities and fund balances $ 40832 $ 88194 $ 152160 $ 1528 $282714 I

shy

l I I

-28shy

Grand Rapids Charter Township COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - nonmajor governmental funds Year ended December 31 2008

Seecial revenue funds

REVENUES Intergovernmental Interest Other

Special assessments Private contributions Miscellaneous

Total revenues

EXPENDITURES Public works

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

OTHER FINANCING SOURCES Transfers in - General Fund

NET CHANGES IN FUND BALANCES

FUND BALANCE - BEGINNING

FUND BALANCE - ENDING

Lakes Lighting and Management Maintenance

$ 2

23528

23530

$ 2

70500

4425

74927

15702 81848

7828 (6921 )

7828

9314

$ 17142

(6921 )

11994

$ 5073

East Courthouse at Beltline

Knaees Corner Gatewar Totals

$ 100000 2160

102160

102160

50000

152160

$ 152160

$

4800

4800

23839

(19039)

20000

961

567

$ 1528

$100000 2164

94028 4800 4425

205417

121389

84028

70000

154028

$175903

-29shy

21875

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 7 - PAYABLES

Payables as of year end of the Townships funds are as follows

Inter-

Fund Accounts Payroll governshymental Totals

Governmental General Pathways Nonmajor governmental

$ 18205 1540 7441

$ 30640 $ 54467 $ 103312 1540 7441

Proprietary Building Inspectiltns

27186 30640 54467

16451

112293

16451

- Totals $ 27186 $ 30640 $ 70918 $ 128744

-NOTE 8 -- INTERFUND TRANSFERS

Interfund transfers for the year ended December 312008 are as follows

Fund Transfer- Fund Transfer out

General $ 731519 Public Safety $ 731519

LeonardCrahEmForesthil1 Pathways 420000

Nonmajor governmental 70000

490000 General 490000

Totals $ 1221519 Totals $ 1221519

The transfer to the General Fund represents restricted revenues collected in the Public Safety Fund to -gtay for operational costs of the public safety functions accounted for in the General Fund The transfers

to the LeonardCrahenForesthill Pathways and non major governmental funds consist of unrestricted General Fund resources that support various programs that are accounted for in other funds of the Township

NOTE 9 - RISK MANAGEMENT

The Township is exposed to various risks of loss related to property loss torts errors and omissions and employee injuries (workers compensation) The Township has purchased commercial insurance for each of these claims and is neither self-insured nor participates in a shared-risk pool Settled claims relating to commercial insurance have not exceeded the amount of insurance coverage in any of the past three fiscal years

-21shy

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 10 - DEFINED CONTRIBUTION PENSION PLAN

The Township provides pension benefits for most of its employees through a defined contribution plan The plan covers all full-time employees and Grand Rapids Charter Township officials with supervisory duties In a defined contribution plan benefits depend solely on amounts contributed to the plan plus investment earnings Employees are eligible to participate from the date of employment The Township contributes a percentage of each qualified employees base salary to the plan The Township contributes 12 for non-union employees and union employees The Townships contributions are fully vested immediately The Township made the required contributions of $73730 for the year ended December 312008

The Township is not a trustee of the plan nor is the Township responsible for investment management of plan assets

NOTE 11 - RESTRICTED NET ASSETS

Net assets of the governmental activities as of December 31 2008 are restricted for the following purposes

Public safety - construction code inspections $ 84458

Public works Courthouse at Knapps Comer 152160 Lakes management 17142 Street lighting and maintenance 5073

Total public works 174375

Total $ 258833

-22shy

REQUIRED SUPPLEMENTARY INFORMATION

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULEmiddot General Fund Year ended December 31 2008

-23shy

I

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULEmiddot General Fund (Continued) Year ended December 31 2008

Variance Original Amended favorable budset budset Actual (unfavorablel

EXPENDITURES (Continued) Health and welfare - ambulance $ 111400 $ 111400 $ 105869 $ 5531

Community and economic development shyplanning and zoning 137529 137529 91337 46192

Recreation and culture - parks and recreation 19500 19500 11879 7621

Capital outlay 48200 48200 54014 (5814)

Total expenditures 2520196 2801862 2644292 157570

DEFICIENCY OF REVENUES OVER EXPENDITURES (223276) (904942) (567321 ) 337621

OTHER FINANCING SOURCES (USES) Transfer in - Public Safety Fund

Transfers out LeonardCrahenForest Hills

Pathway Fund Courthouse at Knapps Corner Fund East Beltline Gateway Fund

732250

(420000)

732250

420000 (50000) (20000)

731519

(420000) 50000 (20000)

731)

Total transfers out (420000) (490000) (490000)

Total other financing sources 312250 242250 241519 (731 )

NET CHANGES IN FUND BALANCES 88974 (662692) (325802) 336890

FUND BALANCESmiddot BEGINNING 1195343 1195343 1195343

FUND BALANCES - ENDING $1284317 $ 532651 $ 869541 $ 336890

-24shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE -Improvement Revolving Fund Year ended December 31 2008

Variance Original Amended favorable budset budset Actual (unfavorablel

REVENUES Interest $ 92500 $ 92500 $ 76275 $ (16225) Other - special assessments 7694 7694 13270 5576

Total revenues 100194 100194 89545 (10649)

SPECIAL ITEM Proceeds from sale of land 891088 891088

NET CHANGES IN FUND BALANCES 100194 100194 980633 880439

FUND BALANCES - BEGINNING 1900242 1900242 1900242

FUND BALANCES - ENDING $ 2000436 $ 2000436 $2880875 $ 880439

I -shy

1

-25shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE - Public Safety Fund Year ended December 31 2008

REVENUES Property taxes $

Original budget

646500

Amended budget

$ 732250

Actual

$ 731519

Variance favorable

(unfavorable)

$ (731)

OTHER FINANCING USES Transfer out - General Fund 646500) 732250) 731519) 731

NET CHANGES IN FUND BALANCES

FUND BALANCES - BEGINNING

FUND BALANCES - ENDING $ $ $ $

-26shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE - LeonardlCrahenlForesthill Pathways Fund Year ended December 312008

Variance Original Amended favorable budset budset Actual (unfavorablel

REVENUES Interest $ 500 $ 500 $ 2640 $ 2140 Other - private contributions 700000 280000 79916 (200084)

Total revenues 700500 280500 82556 (197944)

EXPEN DITU RES Capital outlay 700000 700000 507549 192451

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 500 (419500) (424993) (390395)

OTHER FINANCING SOURCES Transfers in - Genera(Fund 420000 420000

NET CHANGES IN FUND BALANCES 500 500 (4993) (390395)

FUND BALANCE ~ BEGINNING 21650 21650 21650

- FUND BALANCE - ENDING $ 22150 $ 22150 $ 16657 $ 390395)

-

-27shy

SUPPLEMENTARY INFORMATION

Grand Rapids Charter Township COMBINING BALANCE SHEET - nonmajor governmental funds December 31 2008

Seecial revenue funds

East Lakes Lighting and Courthouse at Beltline

Mana9ement Maintenance Knapps Comer Gatewar Totals

ASSETS Cash $ 29078 $ 54357 $ 152160 $ 1528 $ 237123 Receivables 11754 33837 45591

Total assets $ 40832 $ 88194 $ 152160 $ 1528 $282714

LIABILITIES AND FUND BALANCES

Liabilities Payables $ $ 7441 $ $ $ 7441 Deferred revenue 23690 75680 99370

~ bull t

Total liabilities 23690 83121 106811

Fund balances - unreserved -undesignated 17142 5073 152160 1528 175903

rTotal liabilities and fund balances $ 40832 $ 88194 $ 152160 $ 1528 $282714 I

shy

l I I

-28shy

Grand Rapids Charter Township COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - nonmajor governmental funds Year ended December 31 2008

Seecial revenue funds

REVENUES Intergovernmental Interest Other

Special assessments Private contributions Miscellaneous

Total revenues

EXPENDITURES Public works

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

OTHER FINANCING SOURCES Transfers in - General Fund

NET CHANGES IN FUND BALANCES

FUND BALANCE - BEGINNING

FUND BALANCE - ENDING

Lakes Lighting and Management Maintenance

$ 2

23528

23530

$ 2

70500

4425

74927

15702 81848

7828 (6921 )

7828

9314

$ 17142

(6921 )

11994

$ 5073

East Courthouse at Beltline

Knaees Corner Gatewar Totals

$ 100000 2160

102160

102160

50000

152160

$ 152160

$

4800

4800

23839

(19039)

20000

961

567

$ 1528

$100000 2164

94028 4800 4425

205417

121389

84028

70000

154028

$175903

-29shy

21875

Grand Rapids Charter Township NOTES TO FINANCIAL STATEMENTS (Continued)

NOTE 10 - DEFINED CONTRIBUTION PENSION PLAN

The Township provides pension benefits for most of its employees through a defined contribution plan The plan covers all full-time employees and Grand Rapids Charter Township officials with supervisory duties In a defined contribution plan benefits depend solely on amounts contributed to the plan plus investment earnings Employees are eligible to participate from the date of employment The Township contributes a percentage of each qualified employees base salary to the plan The Township contributes 12 for non-union employees and union employees The Townships contributions are fully vested immediately The Township made the required contributions of $73730 for the year ended December 312008

The Township is not a trustee of the plan nor is the Township responsible for investment management of plan assets

NOTE 11 - RESTRICTED NET ASSETS

Net assets of the governmental activities as of December 31 2008 are restricted for the following purposes

Public safety - construction code inspections $ 84458

Public works Courthouse at Knapps Comer 152160 Lakes management 17142 Street lighting and maintenance 5073

Total public works 174375

Total $ 258833

-22shy

REQUIRED SUPPLEMENTARY INFORMATION

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULEmiddot General Fund Year ended December 31 2008

-23shy

I

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULEmiddot General Fund (Continued) Year ended December 31 2008

Variance Original Amended favorable budset budset Actual (unfavorablel

EXPENDITURES (Continued) Health and welfare - ambulance $ 111400 $ 111400 $ 105869 $ 5531

Community and economic development shyplanning and zoning 137529 137529 91337 46192

Recreation and culture - parks and recreation 19500 19500 11879 7621

Capital outlay 48200 48200 54014 (5814)

Total expenditures 2520196 2801862 2644292 157570

DEFICIENCY OF REVENUES OVER EXPENDITURES (223276) (904942) (567321 ) 337621

OTHER FINANCING SOURCES (USES) Transfer in - Public Safety Fund

Transfers out LeonardCrahenForest Hills

Pathway Fund Courthouse at Knapps Corner Fund East Beltline Gateway Fund

732250

(420000)

732250

420000 (50000) (20000)

731519

(420000) 50000 (20000)

731)

Total transfers out (420000) (490000) (490000)

Total other financing sources 312250 242250 241519 (731 )

NET CHANGES IN FUND BALANCES 88974 (662692) (325802) 336890

FUND BALANCESmiddot BEGINNING 1195343 1195343 1195343

FUND BALANCES - ENDING $1284317 $ 532651 $ 869541 $ 336890

-24shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE -Improvement Revolving Fund Year ended December 31 2008

Variance Original Amended favorable budset budset Actual (unfavorablel

REVENUES Interest $ 92500 $ 92500 $ 76275 $ (16225) Other - special assessments 7694 7694 13270 5576

Total revenues 100194 100194 89545 (10649)

SPECIAL ITEM Proceeds from sale of land 891088 891088

NET CHANGES IN FUND BALANCES 100194 100194 980633 880439

FUND BALANCES - BEGINNING 1900242 1900242 1900242

FUND BALANCES - ENDING $ 2000436 $ 2000436 $2880875 $ 880439

I -shy

1

-25shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE - Public Safety Fund Year ended December 31 2008

REVENUES Property taxes $

Original budget

646500

Amended budget

$ 732250

Actual

$ 731519

Variance favorable

(unfavorable)

$ (731)

OTHER FINANCING USES Transfer out - General Fund 646500) 732250) 731519) 731

NET CHANGES IN FUND BALANCES

FUND BALANCES - BEGINNING

FUND BALANCES - ENDING $ $ $ $

-26shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE - LeonardlCrahenlForesthill Pathways Fund Year ended December 312008

Variance Original Amended favorable budset budset Actual (unfavorablel

REVENUES Interest $ 500 $ 500 $ 2640 $ 2140 Other - private contributions 700000 280000 79916 (200084)

Total revenues 700500 280500 82556 (197944)

EXPEN DITU RES Capital outlay 700000 700000 507549 192451

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 500 (419500) (424993) (390395)

OTHER FINANCING SOURCES Transfers in - Genera(Fund 420000 420000

NET CHANGES IN FUND BALANCES 500 500 (4993) (390395)

FUND BALANCE ~ BEGINNING 21650 21650 21650

- FUND BALANCE - ENDING $ 22150 $ 22150 $ 16657 $ 390395)

-

-27shy

SUPPLEMENTARY INFORMATION

Grand Rapids Charter Township COMBINING BALANCE SHEET - nonmajor governmental funds December 31 2008

Seecial revenue funds

East Lakes Lighting and Courthouse at Beltline

Mana9ement Maintenance Knapps Comer Gatewar Totals

ASSETS Cash $ 29078 $ 54357 $ 152160 $ 1528 $ 237123 Receivables 11754 33837 45591

Total assets $ 40832 $ 88194 $ 152160 $ 1528 $282714

LIABILITIES AND FUND BALANCES

Liabilities Payables $ $ 7441 $ $ $ 7441 Deferred revenue 23690 75680 99370

~ bull t

Total liabilities 23690 83121 106811

Fund balances - unreserved -undesignated 17142 5073 152160 1528 175903

rTotal liabilities and fund balances $ 40832 $ 88194 $ 152160 $ 1528 $282714 I

shy

l I I

-28shy

Grand Rapids Charter Township COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - nonmajor governmental funds Year ended December 31 2008

Seecial revenue funds

REVENUES Intergovernmental Interest Other

Special assessments Private contributions Miscellaneous

Total revenues

EXPENDITURES Public works

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

OTHER FINANCING SOURCES Transfers in - General Fund

NET CHANGES IN FUND BALANCES

FUND BALANCE - BEGINNING

FUND BALANCE - ENDING

Lakes Lighting and Management Maintenance

$ 2

23528

23530

$ 2

70500

4425

74927

15702 81848

7828 (6921 )

7828

9314

$ 17142

(6921 )

11994

$ 5073

East Courthouse at Beltline

Knaees Corner Gatewar Totals

$ 100000 2160

102160

102160

50000

152160

$ 152160

$

4800

4800

23839

(19039)

20000

961

567

$ 1528

$100000 2164

94028 4800 4425

205417

121389

84028

70000

154028

$175903

-29shy

21875

REQUIRED SUPPLEMENTARY INFORMATION

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULEmiddot General Fund Year ended December 31 2008

-23shy

I

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULEmiddot General Fund (Continued) Year ended December 31 2008

Variance Original Amended favorable budset budset Actual (unfavorablel

EXPENDITURES (Continued) Health and welfare - ambulance $ 111400 $ 111400 $ 105869 $ 5531

Community and economic development shyplanning and zoning 137529 137529 91337 46192

Recreation and culture - parks and recreation 19500 19500 11879 7621

Capital outlay 48200 48200 54014 (5814)

Total expenditures 2520196 2801862 2644292 157570

DEFICIENCY OF REVENUES OVER EXPENDITURES (223276) (904942) (567321 ) 337621

OTHER FINANCING SOURCES (USES) Transfer in - Public Safety Fund

Transfers out LeonardCrahenForest Hills

Pathway Fund Courthouse at Knapps Corner Fund East Beltline Gateway Fund

732250

(420000)

732250

420000 (50000) (20000)

731519

(420000) 50000 (20000)

731)

Total transfers out (420000) (490000) (490000)

Total other financing sources 312250 242250 241519 (731 )

NET CHANGES IN FUND BALANCES 88974 (662692) (325802) 336890

FUND BALANCESmiddot BEGINNING 1195343 1195343 1195343

FUND BALANCES - ENDING $1284317 $ 532651 $ 869541 $ 336890

-24shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE -Improvement Revolving Fund Year ended December 31 2008

Variance Original Amended favorable budset budset Actual (unfavorablel

REVENUES Interest $ 92500 $ 92500 $ 76275 $ (16225) Other - special assessments 7694 7694 13270 5576

Total revenues 100194 100194 89545 (10649)

SPECIAL ITEM Proceeds from sale of land 891088 891088

NET CHANGES IN FUND BALANCES 100194 100194 980633 880439

FUND BALANCES - BEGINNING 1900242 1900242 1900242

FUND BALANCES - ENDING $ 2000436 $ 2000436 $2880875 $ 880439

I -shy

1

-25shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE - Public Safety Fund Year ended December 31 2008

REVENUES Property taxes $

Original budget

646500

Amended budget

$ 732250

Actual

$ 731519

Variance favorable

(unfavorable)

$ (731)

OTHER FINANCING USES Transfer out - General Fund 646500) 732250) 731519) 731

NET CHANGES IN FUND BALANCES

FUND BALANCES - BEGINNING

FUND BALANCES - ENDING $ $ $ $

-26shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE - LeonardlCrahenlForesthill Pathways Fund Year ended December 312008

Variance Original Amended favorable budset budset Actual (unfavorablel

REVENUES Interest $ 500 $ 500 $ 2640 $ 2140 Other - private contributions 700000 280000 79916 (200084)

Total revenues 700500 280500 82556 (197944)

EXPEN DITU RES Capital outlay 700000 700000 507549 192451

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 500 (419500) (424993) (390395)

OTHER FINANCING SOURCES Transfers in - Genera(Fund 420000 420000

NET CHANGES IN FUND BALANCES 500 500 (4993) (390395)

FUND BALANCE ~ BEGINNING 21650 21650 21650

- FUND BALANCE - ENDING $ 22150 $ 22150 $ 16657 $ 390395)

-

-27shy

SUPPLEMENTARY INFORMATION

Grand Rapids Charter Township COMBINING BALANCE SHEET - nonmajor governmental funds December 31 2008

Seecial revenue funds

East Lakes Lighting and Courthouse at Beltline

Mana9ement Maintenance Knapps Comer Gatewar Totals

ASSETS Cash $ 29078 $ 54357 $ 152160 $ 1528 $ 237123 Receivables 11754 33837 45591

Total assets $ 40832 $ 88194 $ 152160 $ 1528 $282714

LIABILITIES AND FUND BALANCES

Liabilities Payables $ $ 7441 $ $ $ 7441 Deferred revenue 23690 75680 99370

~ bull t

Total liabilities 23690 83121 106811

Fund balances - unreserved -undesignated 17142 5073 152160 1528 175903

rTotal liabilities and fund balances $ 40832 $ 88194 $ 152160 $ 1528 $282714 I

shy

l I I

-28shy

Grand Rapids Charter Township COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - nonmajor governmental funds Year ended December 31 2008

Seecial revenue funds

REVENUES Intergovernmental Interest Other

Special assessments Private contributions Miscellaneous

Total revenues

EXPENDITURES Public works

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

OTHER FINANCING SOURCES Transfers in - General Fund

NET CHANGES IN FUND BALANCES

FUND BALANCE - BEGINNING

FUND BALANCE - ENDING

Lakes Lighting and Management Maintenance

$ 2

23528

23530

$ 2

70500

4425

74927

15702 81848

7828 (6921 )

7828

9314

$ 17142

(6921 )

11994

$ 5073

East Courthouse at Beltline

Knaees Corner Gatewar Totals

$ 100000 2160

102160

102160

50000

152160

$ 152160

$

4800

4800

23839

(19039)

20000

961

567

$ 1528

$100000 2164

94028 4800 4425

205417

121389

84028

70000

154028

$175903

-29shy

21875

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULEmiddot General Fund Year ended December 31 2008

-23shy

I

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULEmiddot General Fund (Continued) Year ended December 31 2008

Variance Original Amended favorable budset budset Actual (unfavorablel

EXPENDITURES (Continued) Health and welfare - ambulance $ 111400 $ 111400 $ 105869 $ 5531

Community and economic development shyplanning and zoning 137529 137529 91337 46192

Recreation and culture - parks and recreation 19500 19500 11879 7621

Capital outlay 48200 48200 54014 (5814)

Total expenditures 2520196 2801862 2644292 157570

DEFICIENCY OF REVENUES OVER EXPENDITURES (223276) (904942) (567321 ) 337621

OTHER FINANCING SOURCES (USES) Transfer in - Public Safety Fund

Transfers out LeonardCrahenForest Hills

Pathway Fund Courthouse at Knapps Corner Fund East Beltline Gateway Fund

732250

(420000)

732250

420000 (50000) (20000)

731519

(420000) 50000 (20000)

731)

Total transfers out (420000) (490000) (490000)

Total other financing sources 312250 242250 241519 (731 )

NET CHANGES IN FUND BALANCES 88974 (662692) (325802) 336890

FUND BALANCESmiddot BEGINNING 1195343 1195343 1195343

FUND BALANCES - ENDING $1284317 $ 532651 $ 869541 $ 336890

-24shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE -Improvement Revolving Fund Year ended December 31 2008

Variance Original Amended favorable budset budset Actual (unfavorablel

REVENUES Interest $ 92500 $ 92500 $ 76275 $ (16225) Other - special assessments 7694 7694 13270 5576

Total revenues 100194 100194 89545 (10649)

SPECIAL ITEM Proceeds from sale of land 891088 891088

NET CHANGES IN FUND BALANCES 100194 100194 980633 880439

FUND BALANCES - BEGINNING 1900242 1900242 1900242

FUND BALANCES - ENDING $ 2000436 $ 2000436 $2880875 $ 880439

I -shy

1

-25shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE - Public Safety Fund Year ended December 31 2008

REVENUES Property taxes $

Original budget

646500

Amended budget

$ 732250

Actual

$ 731519

Variance favorable

(unfavorable)

$ (731)

OTHER FINANCING USES Transfer out - General Fund 646500) 732250) 731519) 731

NET CHANGES IN FUND BALANCES

FUND BALANCES - BEGINNING

FUND BALANCES - ENDING $ $ $ $

-26shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE - LeonardlCrahenlForesthill Pathways Fund Year ended December 312008

Variance Original Amended favorable budset budset Actual (unfavorablel

REVENUES Interest $ 500 $ 500 $ 2640 $ 2140 Other - private contributions 700000 280000 79916 (200084)

Total revenues 700500 280500 82556 (197944)

EXPEN DITU RES Capital outlay 700000 700000 507549 192451

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 500 (419500) (424993) (390395)

OTHER FINANCING SOURCES Transfers in - Genera(Fund 420000 420000

NET CHANGES IN FUND BALANCES 500 500 (4993) (390395)

FUND BALANCE ~ BEGINNING 21650 21650 21650

- FUND BALANCE - ENDING $ 22150 $ 22150 $ 16657 $ 390395)

-

-27shy

SUPPLEMENTARY INFORMATION

Grand Rapids Charter Township COMBINING BALANCE SHEET - nonmajor governmental funds December 31 2008

Seecial revenue funds

East Lakes Lighting and Courthouse at Beltline

Mana9ement Maintenance Knapps Comer Gatewar Totals

ASSETS Cash $ 29078 $ 54357 $ 152160 $ 1528 $ 237123 Receivables 11754 33837 45591

Total assets $ 40832 $ 88194 $ 152160 $ 1528 $282714

LIABILITIES AND FUND BALANCES

Liabilities Payables $ $ 7441 $ $ $ 7441 Deferred revenue 23690 75680 99370

~ bull t

Total liabilities 23690 83121 106811

Fund balances - unreserved -undesignated 17142 5073 152160 1528 175903

rTotal liabilities and fund balances $ 40832 $ 88194 $ 152160 $ 1528 $282714 I

shy

l I I

-28shy

Grand Rapids Charter Township COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - nonmajor governmental funds Year ended December 31 2008

Seecial revenue funds

REVENUES Intergovernmental Interest Other

Special assessments Private contributions Miscellaneous

Total revenues

EXPENDITURES Public works

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

OTHER FINANCING SOURCES Transfers in - General Fund

NET CHANGES IN FUND BALANCES

FUND BALANCE - BEGINNING

FUND BALANCE - ENDING

Lakes Lighting and Management Maintenance

$ 2

23528

23530

$ 2

70500

4425

74927

15702 81848

7828 (6921 )

7828

9314

$ 17142

(6921 )

11994

$ 5073

East Courthouse at Beltline

Knaees Corner Gatewar Totals

$ 100000 2160

102160

102160

50000

152160

$ 152160

$

4800

4800

23839

(19039)

20000

961

567

$ 1528

$100000 2164

94028 4800 4425

205417

121389

84028

70000

154028

$175903

-29shy

21875

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULEmiddot General Fund (Continued) Year ended December 31 2008

Variance Original Amended favorable budset budset Actual (unfavorablel

EXPENDITURES (Continued) Health and welfare - ambulance $ 111400 $ 111400 $ 105869 $ 5531

Community and economic development shyplanning and zoning 137529 137529 91337 46192

Recreation and culture - parks and recreation 19500 19500 11879 7621

Capital outlay 48200 48200 54014 (5814)

Total expenditures 2520196 2801862 2644292 157570

DEFICIENCY OF REVENUES OVER EXPENDITURES (223276) (904942) (567321 ) 337621

OTHER FINANCING SOURCES (USES) Transfer in - Public Safety Fund

Transfers out LeonardCrahenForest Hills

Pathway Fund Courthouse at Knapps Corner Fund East Beltline Gateway Fund

732250

(420000)

732250

420000 (50000) (20000)

731519

(420000) 50000 (20000)

731)

Total transfers out (420000) (490000) (490000)

Total other financing sources 312250 242250 241519 (731 )

NET CHANGES IN FUND BALANCES 88974 (662692) (325802) 336890

FUND BALANCESmiddot BEGINNING 1195343 1195343 1195343

FUND BALANCES - ENDING $1284317 $ 532651 $ 869541 $ 336890

-24shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE -Improvement Revolving Fund Year ended December 31 2008

Variance Original Amended favorable budset budset Actual (unfavorablel

REVENUES Interest $ 92500 $ 92500 $ 76275 $ (16225) Other - special assessments 7694 7694 13270 5576

Total revenues 100194 100194 89545 (10649)

SPECIAL ITEM Proceeds from sale of land 891088 891088

NET CHANGES IN FUND BALANCES 100194 100194 980633 880439

FUND BALANCES - BEGINNING 1900242 1900242 1900242

FUND BALANCES - ENDING $ 2000436 $ 2000436 $2880875 $ 880439

I -shy

1

-25shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE - Public Safety Fund Year ended December 31 2008

REVENUES Property taxes $

Original budget

646500

Amended budget

$ 732250

Actual

$ 731519

Variance favorable

(unfavorable)

$ (731)

OTHER FINANCING USES Transfer out - General Fund 646500) 732250) 731519) 731

NET CHANGES IN FUND BALANCES

FUND BALANCES - BEGINNING

FUND BALANCES - ENDING $ $ $ $

-26shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE - LeonardlCrahenlForesthill Pathways Fund Year ended December 312008

Variance Original Amended favorable budset budset Actual (unfavorablel

REVENUES Interest $ 500 $ 500 $ 2640 $ 2140 Other - private contributions 700000 280000 79916 (200084)

Total revenues 700500 280500 82556 (197944)

EXPEN DITU RES Capital outlay 700000 700000 507549 192451

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 500 (419500) (424993) (390395)

OTHER FINANCING SOURCES Transfers in - Genera(Fund 420000 420000

NET CHANGES IN FUND BALANCES 500 500 (4993) (390395)

FUND BALANCE ~ BEGINNING 21650 21650 21650

- FUND BALANCE - ENDING $ 22150 $ 22150 $ 16657 $ 390395)

-

-27shy

SUPPLEMENTARY INFORMATION

Grand Rapids Charter Township COMBINING BALANCE SHEET - nonmajor governmental funds December 31 2008

Seecial revenue funds

East Lakes Lighting and Courthouse at Beltline

Mana9ement Maintenance Knapps Comer Gatewar Totals

ASSETS Cash $ 29078 $ 54357 $ 152160 $ 1528 $ 237123 Receivables 11754 33837 45591

Total assets $ 40832 $ 88194 $ 152160 $ 1528 $282714

LIABILITIES AND FUND BALANCES

Liabilities Payables $ $ 7441 $ $ $ 7441 Deferred revenue 23690 75680 99370

~ bull t

Total liabilities 23690 83121 106811

Fund balances - unreserved -undesignated 17142 5073 152160 1528 175903

rTotal liabilities and fund balances $ 40832 $ 88194 $ 152160 $ 1528 $282714 I

shy

l I I

-28shy

Grand Rapids Charter Township COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - nonmajor governmental funds Year ended December 31 2008

Seecial revenue funds

REVENUES Intergovernmental Interest Other

Special assessments Private contributions Miscellaneous

Total revenues

EXPENDITURES Public works

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

OTHER FINANCING SOURCES Transfers in - General Fund

NET CHANGES IN FUND BALANCES

FUND BALANCE - BEGINNING

FUND BALANCE - ENDING

Lakes Lighting and Management Maintenance

$ 2

23528

23530

$ 2

70500

4425

74927

15702 81848

7828 (6921 )

7828

9314

$ 17142

(6921 )

11994

$ 5073

East Courthouse at Beltline

Knaees Corner Gatewar Totals

$ 100000 2160

102160

102160

50000

152160

$ 152160

$

4800

4800

23839

(19039)

20000

961

567

$ 1528

$100000 2164

94028 4800 4425

205417

121389

84028

70000

154028

$175903

-29shy

21875

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE -Improvement Revolving Fund Year ended December 31 2008

Variance Original Amended favorable budset budset Actual (unfavorablel

REVENUES Interest $ 92500 $ 92500 $ 76275 $ (16225) Other - special assessments 7694 7694 13270 5576

Total revenues 100194 100194 89545 (10649)

SPECIAL ITEM Proceeds from sale of land 891088 891088

NET CHANGES IN FUND BALANCES 100194 100194 980633 880439

FUND BALANCES - BEGINNING 1900242 1900242 1900242

FUND BALANCES - ENDING $ 2000436 $ 2000436 $2880875 $ 880439

I -shy

1

-25shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE - Public Safety Fund Year ended December 31 2008

REVENUES Property taxes $

Original budget

646500

Amended budget

$ 732250

Actual

$ 731519

Variance favorable

(unfavorable)

$ (731)

OTHER FINANCING USES Transfer out - General Fund 646500) 732250) 731519) 731

NET CHANGES IN FUND BALANCES

FUND BALANCES - BEGINNING

FUND BALANCES - ENDING $ $ $ $

-26shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE - LeonardlCrahenlForesthill Pathways Fund Year ended December 312008

Variance Original Amended favorable budset budset Actual (unfavorablel

REVENUES Interest $ 500 $ 500 $ 2640 $ 2140 Other - private contributions 700000 280000 79916 (200084)

Total revenues 700500 280500 82556 (197944)

EXPEN DITU RES Capital outlay 700000 700000 507549 192451

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 500 (419500) (424993) (390395)

OTHER FINANCING SOURCES Transfers in - Genera(Fund 420000 420000

NET CHANGES IN FUND BALANCES 500 500 (4993) (390395)

FUND BALANCE ~ BEGINNING 21650 21650 21650

- FUND BALANCE - ENDING $ 22150 $ 22150 $ 16657 $ 390395)

-

-27shy

SUPPLEMENTARY INFORMATION

Grand Rapids Charter Township COMBINING BALANCE SHEET - nonmajor governmental funds December 31 2008

Seecial revenue funds

East Lakes Lighting and Courthouse at Beltline

Mana9ement Maintenance Knapps Comer Gatewar Totals

ASSETS Cash $ 29078 $ 54357 $ 152160 $ 1528 $ 237123 Receivables 11754 33837 45591

Total assets $ 40832 $ 88194 $ 152160 $ 1528 $282714

LIABILITIES AND FUND BALANCES

Liabilities Payables $ $ 7441 $ $ $ 7441 Deferred revenue 23690 75680 99370

~ bull t

Total liabilities 23690 83121 106811

Fund balances - unreserved -undesignated 17142 5073 152160 1528 175903

rTotal liabilities and fund balances $ 40832 $ 88194 $ 152160 $ 1528 $282714 I

shy

l I I

-28shy

Grand Rapids Charter Township COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - nonmajor governmental funds Year ended December 31 2008

Seecial revenue funds

REVENUES Intergovernmental Interest Other

Special assessments Private contributions Miscellaneous

Total revenues

EXPENDITURES Public works

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

OTHER FINANCING SOURCES Transfers in - General Fund

NET CHANGES IN FUND BALANCES

FUND BALANCE - BEGINNING

FUND BALANCE - ENDING

Lakes Lighting and Management Maintenance

$ 2

23528

23530

$ 2

70500

4425

74927

15702 81848

7828 (6921 )

7828

9314

$ 17142

(6921 )

11994

$ 5073

East Courthouse at Beltline

Knaees Corner Gatewar Totals

$ 100000 2160

102160

102160

50000

152160

$ 152160

$

4800

4800

23839

(19039)

20000

961

567

$ 1528

$100000 2164

94028 4800 4425

205417

121389

84028

70000

154028

$175903

-29shy

21875

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE - Public Safety Fund Year ended December 31 2008

REVENUES Property taxes $

Original budget

646500

Amended budget

$ 732250

Actual

$ 731519

Variance favorable

(unfavorable)

$ (731)

OTHER FINANCING USES Transfer out - General Fund 646500) 732250) 731519) 731

NET CHANGES IN FUND BALANCES

FUND BALANCES - BEGINNING

FUND BALANCES - ENDING $ $ $ $

-26shy

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE - LeonardlCrahenlForesthill Pathways Fund Year ended December 312008

Variance Original Amended favorable budset budset Actual (unfavorablel

REVENUES Interest $ 500 $ 500 $ 2640 $ 2140 Other - private contributions 700000 280000 79916 (200084)

Total revenues 700500 280500 82556 (197944)

EXPEN DITU RES Capital outlay 700000 700000 507549 192451

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 500 (419500) (424993) (390395)

OTHER FINANCING SOURCES Transfers in - Genera(Fund 420000 420000

NET CHANGES IN FUND BALANCES 500 500 (4993) (390395)

FUND BALANCE ~ BEGINNING 21650 21650 21650

- FUND BALANCE - ENDING $ 22150 $ 22150 $ 16657 $ 390395)

-

-27shy

SUPPLEMENTARY INFORMATION

Grand Rapids Charter Township COMBINING BALANCE SHEET - nonmajor governmental funds December 31 2008

Seecial revenue funds

East Lakes Lighting and Courthouse at Beltline

Mana9ement Maintenance Knapps Comer Gatewar Totals

ASSETS Cash $ 29078 $ 54357 $ 152160 $ 1528 $ 237123 Receivables 11754 33837 45591

Total assets $ 40832 $ 88194 $ 152160 $ 1528 $282714

LIABILITIES AND FUND BALANCES

Liabilities Payables $ $ 7441 $ $ $ 7441 Deferred revenue 23690 75680 99370

~ bull t

Total liabilities 23690 83121 106811

Fund balances - unreserved -undesignated 17142 5073 152160 1528 175903

rTotal liabilities and fund balances $ 40832 $ 88194 $ 152160 $ 1528 $282714 I

shy

l I I

-28shy

Grand Rapids Charter Township COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - nonmajor governmental funds Year ended December 31 2008

Seecial revenue funds

REVENUES Intergovernmental Interest Other

Special assessments Private contributions Miscellaneous

Total revenues

EXPENDITURES Public works

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

OTHER FINANCING SOURCES Transfers in - General Fund

NET CHANGES IN FUND BALANCES

FUND BALANCE - BEGINNING

FUND BALANCE - ENDING

Lakes Lighting and Management Maintenance

$ 2

23528

23530

$ 2

70500

4425

74927

15702 81848

7828 (6921 )

7828

9314

$ 17142

(6921 )

11994

$ 5073

East Courthouse at Beltline

Knaees Corner Gatewar Totals

$ 100000 2160

102160

102160

50000

152160

$ 152160

$

4800

4800

23839

(19039)

20000

961

567

$ 1528

$100000 2164

94028 4800 4425

205417

121389

84028

70000

154028

$175903

-29shy

21875

Grand Rapids Charter Township BUDGETARY COMPARISON SCHEDULE - LeonardlCrahenlForesthill Pathways Fund Year ended December 312008

Variance Original Amended favorable budset budset Actual (unfavorablel

REVENUES Interest $ 500 $ 500 $ 2640 $ 2140 Other - private contributions 700000 280000 79916 (200084)

Total revenues 700500 280500 82556 (197944)

EXPEN DITU RES Capital outlay 700000 700000 507549 192451

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 500 (419500) (424993) (390395)

OTHER FINANCING SOURCES Transfers in - Genera(Fund 420000 420000

NET CHANGES IN FUND BALANCES 500 500 (4993) (390395)

FUND BALANCE ~ BEGINNING 21650 21650 21650

- FUND BALANCE - ENDING $ 22150 $ 22150 $ 16657 $ 390395)

-

-27shy

SUPPLEMENTARY INFORMATION

Grand Rapids Charter Township COMBINING BALANCE SHEET - nonmajor governmental funds December 31 2008

Seecial revenue funds

East Lakes Lighting and Courthouse at Beltline

Mana9ement Maintenance Knapps Comer Gatewar Totals

ASSETS Cash $ 29078 $ 54357 $ 152160 $ 1528 $ 237123 Receivables 11754 33837 45591

Total assets $ 40832 $ 88194 $ 152160 $ 1528 $282714

LIABILITIES AND FUND BALANCES

Liabilities Payables $ $ 7441 $ $ $ 7441 Deferred revenue 23690 75680 99370

~ bull t

Total liabilities 23690 83121 106811

Fund balances - unreserved -undesignated 17142 5073 152160 1528 175903

rTotal liabilities and fund balances $ 40832 $ 88194 $ 152160 $ 1528 $282714 I

shy

l I I

-28shy

Grand Rapids Charter Township COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - nonmajor governmental funds Year ended December 31 2008

Seecial revenue funds

REVENUES Intergovernmental Interest Other

Special assessments Private contributions Miscellaneous

Total revenues

EXPENDITURES Public works

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

OTHER FINANCING SOURCES Transfers in - General Fund

NET CHANGES IN FUND BALANCES

FUND BALANCE - BEGINNING

FUND BALANCE - ENDING

Lakes Lighting and Management Maintenance

$ 2

23528

23530

$ 2

70500

4425

74927

15702 81848

7828 (6921 )

7828

9314

$ 17142

(6921 )

11994

$ 5073

East Courthouse at Beltline

Knaees Corner Gatewar Totals

$ 100000 2160

102160

102160

50000

152160

$ 152160

$

4800

4800

23839

(19039)

20000

961

567

$ 1528

$100000 2164

94028 4800 4425

205417

121389

84028

70000

154028

$175903

-29shy

21875

SUPPLEMENTARY INFORMATION

Grand Rapids Charter Township COMBINING BALANCE SHEET - nonmajor governmental funds December 31 2008

Seecial revenue funds

East Lakes Lighting and Courthouse at Beltline

Mana9ement Maintenance Knapps Comer Gatewar Totals

ASSETS Cash $ 29078 $ 54357 $ 152160 $ 1528 $ 237123 Receivables 11754 33837 45591

Total assets $ 40832 $ 88194 $ 152160 $ 1528 $282714

LIABILITIES AND FUND BALANCES

Liabilities Payables $ $ 7441 $ $ $ 7441 Deferred revenue 23690 75680 99370

~ bull t

Total liabilities 23690 83121 106811

Fund balances - unreserved -undesignated 17142 5073 152160 1528 175903

rTotal liabilities and fund balances $ 40832 $ 88194 $ 152160 $ 1528 $282714 I

shy

l I I

-28shy

Grand Rapids Charter Township COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - nonmajor governmental funds Year ended December 31 2008

Seecial revenue funds

REVENUES Intergovernmental Interest Other

Special assessments Private contributions Miscellaneous

Total revenues

EXPENDITURES Public works

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

OTHER FINANCING SOURCES Transfers in - General Fund

NET CHANGES IN FUND BALANCES

FUND BALANCE - BEGINNING

FUND BALANCE - ENDING

Lakes Lighting and Management Maintenance

$ 2

23528

23530

$ 2

70500

4425

74927

15702 81848

7828 (6921 )

7828

9314

$ 17142

(6921 )

11994

$ 5073

East Courthouse at Beltline

Knaees Corner Gatewar Totals

$ 100000 2160

102160

102160

50000

152160

$ 152160

$

4800

4800

23839

(19039)

20000

961

567

$ 1528

$100000 2164

94028 4800 4425

205417

121389

84028

70000

154028

$175903

-29shy

21875

Grand Rapids Charter Township COMBINING BALANCE SHEET - nonmajor governmental funds December 31 2008

Seecial revenue funds

East Lakes Lighting and Courthouse at Beltline

Mana9ement Maintenance Knapps Comer Gatewar Totals

ASSETS Cash $ 29078 $ 54357 $ 152160 $ 1528 $ 237123 Receivables 11754 33837 45591

Total assets $ 40832 $ 88194 $ 152160 $ 1528 $282714

LIABILITIES AND FUND BALANCES

Liabilities Payables $ $ 7441 $ $ $ 7441 Deferred revenue 23690 75680 99370

~ bull t

Total liabilities 23690 83121 106811

Fund balances - unreserved -undesignated 17142 5073 152160 1528 175903

rTotal liabilities and fund balances $ 40832 $ 88194 $ 152160 $ 1528 $282714 I

shy

l I I

-28shy

Grand Rapids Charter Township COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - nonmajor governmental funds Year ended December 31 2008

Seecial revenue funds

REVENUES Intergovernmental Interest Other

Special assessments Private contributions Miscellaneous

Total revenues

EXPENDITURES Public works

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

OTHER FINANCING SOURCES Transfers in - General Fund

NET CHANGES IN FUND BALANCES

FUND BALANCE - BEGINNING

FUND BALANCE - ENDING

Lakes Lighting and Management Maintenance

$ 2

23528

23530

$ 2

70500

4425

74927

15702 81848

7828 (6921 )

7828

9314

$ 17142

(6921 )

11994

$ 5073

East Courthouse at Beltline

Knaees Corner Gatewar Totals

$ 100000 2160

102160

102160

50000

152160

$ 152160

$

4800

4800

23839

(19039)

20000

961

567

$ 1528

$100000 2164

94028 4800 4425

205417

121389

84028

70000

154028

$175903

-29shy

21875

Grand Rapids Charter Township COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - nonmajor governmental funds Year ended December 31 2008

Seecial revenue funds

REVENUES Intergovernmental Interest Other

Special assessments Private contributions Miscellaneous

Total revenues

EXPENDITURES Public works

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

OTHER FINANCING SOURCES Transfers in - General Fund

NET CHANGES IN FUND BALANCES

FUND BALANCE - BEGINNING

FUND BALANCE - ENDING

Lakes Lighting and Management Maintenance

$ 2

23528

23530

$ 2

70500

4425

74927

15702 81848

7828 (6921 )

7828

9314

$ 17142

(6921 )

11994

$ 5073

East Courthouse at Beltline

Knaees Corner Gatewar Totals

$ 100000 2160

102160

102160

50000

152160

$ 152160

$

4800

4800

23839

(19039)

20000

961

567

$ 1528

$100000 2164

94028 4800 4425

205417

121389

84028

70000

154028

$175903

-29shy

21875